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The embattled US dollar continued to struggle on Thursday on the back of negative housing figures that were released in the US on Wednesday.
And there was no sign of a let up in the dollar’s recent slide early on Thursday as it struggled against the yen, dipping below the 119 at one point to hit a three-month low.
On Wednesday, housing figures showed that the 2.2 percent drop was the largest in five months.
The price of new homes was also down. The average price of a new home was down 2.2 percent to $237,900 year-on-year.
The actual number of single family homes sold was down 6.6 percent in June.
In New York, the Dow Jones industrial average suffered more heavy losses in early trading, sliding more than 280 points.
Meanwhile, the Treasury note yield was down to 4.8 percent.
While the dollar struggled against the yen, it remained stable against the euro after recent losses.
The British pound was at at $2.0483, compared with $2.0524 at the close of business at Wednesday. Meanwhile, the euro weakened against the yen, sliding from 165.30 late Wednesday to Y163.52.
However, ongoing uncertainty revolving around the subprime loans market in the US and a gloomy outlook on the broader housing market, as well as an expected interest rate hike in Europe, may continue to hamper the US currency in coming weeks.
13:36
Posted on Jul-27-2007
