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In the Q2 report on Thursday, the Commerce Department stated that gross domestic product rose at an adjusted seasonal rate of 4.0 percent annually. Economists, however, were expecting a 4.1 percent rise. Under normal conditions the market numbers would be acceptable, however, these are not normal conditions, according to Adarsh Sinha, a foreign exchange strategist at Barclays Capital in London.
The ongoing turbulence in equities and credit markets have caused consumers to pay little heed to the report. The GDP data is from a period before the turbulence started, so many have viewed the report as outdated.
The US dollar hasn’t faired well against the yen on Thursday in New York, and came up short at Y115.73 from Y116.21.The dollar's declines against the yen comes after sharp gains against Japan's currency - perhaps overdone - a day earlier on the back of a jump in U.S. stock markets. It didn’t show a major reaction to the report on economic growth that came even close to expectations.
The dollar’s decline is said to come after high gains against the yen a day earlier behind a jump in US stock markets.
Other currency didn’t fair well either. The Euro was at $1.3624 from $1.3677 late Wednesday and Y157.71 from Y158.92. The UK Pound was at $2.0112 from $2.0179, while the dollar was quoted at CHF1.2046 from CHF1.1999.
22:04
Posted on Dec-14-2007
