The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.5640 level and was capped around the $1.5740 level. The common currency retreated after NYMEX crude oil futures of August delivery extended recent gains and tested the $135 handle on reduced concerns over supply constraints. The Group of Eight summit in Hokkaido was largely a non-event for the exchange rates market. President Bush reaffirmed the U.S.'s long-standing strong dollar policy and the G8 expressed "strong concern" about oil and food prices, noting they "pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable and increase global inflationary pressure.
" Federal Reserve Chairman Bernanke suggested the Fed may extend its credit facilities for primary dealers "beyond year-end." Data released in the U.S. today saw May pending home sales fall 4.7% m/m and 14% y/y, the latest indication of the sector's struggles. Also, May wholesale inventories were off 0.8%. In eurozone news, European Central Bank member Papademos reiterated the ECB will take steps to ensure price stability. Euro bids are cited around the $1.5645/ $1.5230 levels.
" Federal Reserve Chairman Bernanke suggested the Fed may extend its credit facilities for primary dealers "beyond year-end." Data released in the U.S. today saw May pending home sales fall 4.7% m/m and 14% y/y, the latest indication of the sector's struggles. Also, May wholesale inventories were off 0.8%. In eurozone news, European Central Bank member Papademos reiterated the ECB will take steps to ensure price stability. Euro bids are cited around the $1.5645/ $1.5230 levels.