Dollar Extends Record Low Versus Swiss Franc, Gains On Yen
The dollar continued its downward spiral against the safe haven Swiss franc on Tuesday, as many traders remained unconvinced that a bailout for Greece will help avoid an inevitable defaults.
Meanwhile, those expecting a Greek rescue to stabilize the region snapped up the euro, leaving the dollar sharply lower versus both European rivals.
The only way to avoid an immediate default is for the Greek Parliament to endorse the austerity programme that includes medium-term fiscal strategy and privatization measures, European Union Economic and Monetary Affairs Commissioner Olli Rehn warned today.
A mixed bag of U.S. economic data raised further questions about the pace of the American recovery.
The buck extended a prolonged losing streak versus the Swiss franc dropping to a new record low of CHF 0.8274.
Against the euro, the dollar eased to a daily low near $1.44, having fallen sharply from where it began the week at $1.41.
On the flip side, the dollar rallied to its highest since June 1 against the yen, hitting Y81.25.
In economic news, the Conference Board released a report showing that U.S. consumer confidence, unexpectedly fell to its lowest level in seven months in June.
The Conference Board said its consumer confidence index fell to 58.5 in June from an upwardly revised 61.7 in May.
Confidence among German consumers is set to strengthen in July as continued expansion of the economy and recovery of the labor market pushed consumers’ income expectations higher, results of a key survey showed Tuesday.
U.S. home prices showed a notable decrease in April compared to the same month a year ago, according to a report released by Standard & Poor’s on Tuesday, although the report also showed the first monthly increase in prices in eight months.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index, which measures home prices in 20 major metropolitan areas, fell at an annual rate of 4 percent in April compared to a revised 3.8 percent drop in March.
