Dollar gains on U.S. economic growth expectation

Posted on Jan 5, 2011 in AllEconomic News
The U.S. dollar rose against major currencies in late New York trading on Tuesday as surprising rise in factory orders and Federal Reserve’s minutes boosted expectation of U.S. economic growth.

The dollar gained sharply against the yen in earlier trading after the Commerce Department reported that U.S. factory orders rose surprisingly 0.7 percent in November, compared with the expectations for no change.

And the minutes of Fed’s Dec. 14 meeting showed the U.S. economy was improving, but the central bank would continue its 600 billion dollars bonds buying plan to ensure the economic recovery.

On Tuesday, commodities like crude oil, gold and copper and the stocks dropped, which also encouraged the dollar demand.

In late Tuesday trading, the dollar bought 82.02 Japanese yen, comparing with 81.65 late Monday, and the euro fell to 1.3305 dollars from 1.3364.

The dollar rose to 0.9496 from 0.9330 against Swiss francs, and increased to 0.9996 Canadian dollars from 0.9917.

However, boosted by manufacturing expansion, the British pound rose to 1.5583 dollars from 1.5491.

Dollar gains on U.S. economic growth expectation – People’s Daily Online.