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The US dollar began a tentative recovery on Wednesday despite reaching a new low against both the euro and the sterling on Tuesday.
The dollar ended Tuesday at 121.16 but the early signs on Wednesday were positive as the market awaited US housing data that would shed some light on the state of the country’s mortgage market.
The US currency finally began to make a recovery against euro, falling below the $1.38 mark.
The euro was not helped by news that French business sentiment was not as positive as expected, unchanged from June in July.
However, the fate of the dollar for the day remained far from certain as further evidence of a continued slowing in the housing market could offset the upward trend, even though risk aversion in credit markets is giving some support.
The Beige book and weekly mortgage application figures were also due Wednesday.
The British pound was also weaker against the dollar, falling back from 26-year highs on Wednesday.
Meanwhile, Wall Street suffered further declines on Tuesday with Dow Jones industrials down 226.47 points, or 1.62 percent, to 13,716.95.
19:05
Posted on Jul-30-2007
