August 17, 2009
The dollar rebounded against most major currencies on Monday after a weak consumer sentiment report boosted safety haven demand for the U.S. currency.
The Reuters/University of Michigan index of consumer sentiment declined by 2.8 points to settle at 63.2 points in the first two weeks of August. It was the lowest level since March 2009. Sentiment for current economic conditions tumbled by a sharp 5.6 points to 64.9 points. The expectations index fell by 1.1 point to 62.1 points.
The sharp drop of consumer sentiment was connected with further deterioration in labor market conditions, with declines in July payroll employment levels and general downward pressure on wages and salaries and other non-wage income, analysts said.
The U.S. Federal Reserve reported that industrial production rose by 0.5 percent in July, the first increase since last October. The Labor Department reported that consumer prices were flat in July compared to June as energy prices fell. Prices fell by 2.1 percent year-on-year, the worst in decades.