NEW YORK: The US dollar firmed in late trading on Wednesday, as US consumer confidence increased to a five-month high in December, reported Xinhua.
The dollar index, which measures the greenback against six major peers, rose 0.24 per cent to 102.4171 in late trading.
The US mortgage rates fell to below 7 per cent last week, data from the Mortgage Bankers’ Association indicated Wednesday, taking 30-year home borrowing costs to 6.83 per cent, the lowest levels since June amid the historic December bond market rally.
Sales of previously owned homes rose 0.8 per cent in November from the previous month to an annual rate of 3.82 million units, snapping a five-month losing streak, according to new data released Wednesday by the National Association of Realtors. It marked the slowest pace of sales since August 2010.
Meanwhile, the Conference Board Consumer Confidence Index increased in December to 110.7, up from a downwardly revised 101.0 in November. “The top issue affecting consumers remains rising prices in general, while politics, interest rates, and global conflicts all saw downticks as top concerns,“ said Dana Peterson, the chief economist at the Conference Board.
However, the US dollar came under pressure from month-end rebalancing by investors. “Our proprietary month-end rebalancing model indicates a strong dollar selling signal by month-end against all majors,“ Barclays strategists said in a note on Wednesday.
In late New York trading, the euro was down to US$1.0945 from US$1.0976 in the previous session, but the German consumer sentiment index rose to -25.1 points heading into January from a revised -27.6 the month before and above expectations.
British inflation fell from 4.6 per cent to 3.9 per cent last month, the lowest for more than two years, according to the Office for National Statistics on Wednesday. The British pound was down to US$1.2641 from US$1.2723 in the previous session.
The US dollar bought 143.8380 Japanese yen, lower than 143.8940 Japanese yen of the previous session. The US dollar increased to 1.3347 Canadian dollars from 1.3335 Canadian dollars, as a bump in Crude Oil bids was propping up the Canadian dollar while the Bank of Canada sees lower odds of inflation risks making a reappearance.
The US dollar increased to 0.8630 Swiss francs from 0.8608 Swiss francs, and it rose to 10.1736 Swedish kronor from 10.1683 Swedish kronor. – Bernama
