Dollar loses ground against major currencies ahead of inflation report
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NEW YORK, Sep 14, 2006 (AP Worldstream via COMTEX) -- The dollar slipped against most major currencies Thursday as markets shrugged off new economic reports and instead squared up positions ahead of inflation data due out Friday.
In afternoon New York trading, the euro bought $1.2729, up from $1.2692 late Wednesday in New York. The British pound rose to $1.8864 from $1.8763.
The dollar slid against the Japanese currency, falling to 117.49 yen from 117.56 the day before.
On Friday, the Labor Department releases its consumer price index, a key gauge for inflation. If the data shows higher core prices, the Federal Reserve could make the case for additional interest-rate hikes.
"Investors are positioning themselves in front of the CPI, which is critical to how people judge the Fed's ability to stay on pause," said David Gilmore, a partner at Foreign Exchange Analytics in Essex, Connecticut. "That's towering over today's pretty insignificant data."
In August, the central bank kept rates unchanged for the first time in more than two years, saying that the economy and inflation seemed to be moderating. The Fed meets again on Sept. 20.
On Thursday, the Commerce Department reported that American retailers saw a 0.2 percent increase in sales last month following a 1.4 percent rise in July. It was the weakest performance since sales fell by 0.5 percent in June, but it surpassed analyst expectations.
The Labor Department said that the number of Americans filing claims for unemployment benefits fell to 308,000 last week, down from the previous week. A third report showed that inventories held by businesses rose by 0.6 percent in July.
In other New York trading, the dollar bought 1.2511 Swiss francs, up from 1.2506 late Wednesday, and 1.1173 Canadian dollars, down from 1.1204. The Swiss National Bank raised its interest rates Thursday by a quarter point for the fourth time since December 2005.
<hr class="reg_text">
NEW YORK, Sep 14, 2006 (AP Worldstream via COMTEX) -- The dollar slipped against most major currencies Thursday as markets shrugged off new economic reports and instead squared up positions ahead of inflation data due out Friday.
In afternoon New York trading, the euro bought $1.2729, up from $1.2692 late Wednesday in New York. The British pound rose to $1.8864 from $1.8763.
The dollar slid against the Japanese currency, falling to 117.49 yen from 117.56 the day before.
On Friday, the Labor Department releases its consumer price index, a key gauge for inflation. If the data shows higher core prices, the Federal Reserve could make the case for additional interest-rate hikes.
"Investors are positioning themselves in front of the CPI, which is critical to how people judge the Fed's ability to stay on pause," said David Gilmore, a partner at Foreign Exchange Analytics in Essex, Connecticut. "That's towering over today's pretty insignificant data."
In August, the central bank kept rates unchanged for the first time in more than two years, saying that the economy and inflation seemed to be moderating. The Fed meets again on Sept. 20.
On Thursday, the Commerce Department reported that American retailers saw a 0.2 percent increase in sales last month following a 1.4 percent rise in July. It was the weakest performance since sales fell by 0.5 percent in June, but it surpassed analyst expectations.
The Labor Department said that the number of Americans filing claims for unemployment benefits fell to 308,000 last week, down from the previous week. A third report showed that inventories held by businesses rose by 0.6 percent in July.
In other New York trading, the dollar bought 1.2511 Swiss francs, up from 1.2506 late Wednesday, and 1.1173 Canadian dollars, down from 1.1204. The Swiss National Bank raised its interest rates Thursday by a quarter point for the fourth time since December 2005.
