NEW YORK (AP) - The dollar was mixed against major currencies in late New
York trading Monday after a report said sales of existing U.S. homes rose
unexpectedly in February.
The 15-nation euro slipped to $1.5418, compared with $1.5444 it traded in
New York late Thursday. European and U.S. markets were closed Friday for the
start of the three-day Easter holiday, and some European markets remained closed
Monday.
The dollar was also higher against the Japanese currency, buying 101.01 yen
Monday, up from 100.00 yen in Thursday trading. The dollar fell against the
British pound, which rose to $1.9841 on Monday from the $1.9826 it purchased
late Thursday.
In other trading, the dollar fell to 1.0184 Canadian dollars from 1.0239
Canadian dollars Thursday, but jumped to 1.0213 Swiss francs from 1.0098 Swiss
francs.
The National Association of Realtors said that U.S. sales of existing homes
rose by 2.9 percent in February to a seasonally adjusted annual rate of just
more than 5 million units. In the previous six months, sales had fallen,
something analysts had been expecting again last month.
The report showed the biggest increase in a year and caught economists by
surprise. They had been expecting a small decline.
The dollar had been weighed down in recent months by mounting worries about
the economy, as Wall Street turmoil and a severe credit crunch have threatened
the stability of the U.S. financial system. But the U.S. currency started to
rebound last week after the Federal Reserve cut its key interest rate by
three-fourths of a percentage point, the sixth rate cut since September.
Though lower interest rates can spark a nation's economy, they can weigh on
its currency as traders transfer funds to countries where they can earn higher
returns.
Michael Woolfolk, senior currency strategist at the Bank of New York, said
he expects the dollar to continue its recovery in coming weeks.
"The dollar's rally reflects a renewed confidence in the U.S. economy,"
Woolfolk said. "We're going to continue to see upward buying of the dollar, as
there is improvement in trading sentiment. We expect this to continue for a long
time, but this is not to say that we've seen the dollar's bottom."
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