Dollar Stays On Pause Wednesday Morning
The dollar was locked in a stalemate with most major currencies Wednesday morning in New York, as traders looked for more clues about when Europe will resolve its lingering sovereign debt crisis.
Fears that Greece will default has rattled equity markets and left the euro in limbo, helping the dollar strengthen in recent weeks. If Greece defaults or restructures, it is expected that Ireland or Portugal will follow suit.
There was little movement for the buck against the euro this morning, with the pair holding near $1.4075 in quiet dealing. Earlier this week, the buck hit a 2-month peak of $1.3968.
The dollar was slightly weaker versus the sterling, easing to $1.6225. The loss took the dollar from Monday’s 2-month high of $1.6057.
On the flip side, the dollar firmed a bit versus the yen, holding above Y82.
The dollar held its recent gains versus its Canadian counterpart, staying two cents below par.
U.S. durable goods orders fell more than expected in April, dropping 3.6 percent, according to just-released government figures.
In news from the housing front, U.S. mortgage applications increased 1.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 20, 2011.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.69 percent from 4.60 percent last week.
