September 10, 2009
The dollar fell against most major currencies on Wednesday after some new reports and data added hope for an economic recovery.
Despite labor markets remain weak with persistent downward pressure on wages, U.S. economic activity continued to stabilize in the summer months, according to the U.S. Federal Reserve Beige Book released on Wednesday.
In the Fed's 12 regional bank districts, five districts reported an improvement and four reported more stable conditions. Only one district reported declining activity, but the rate of decline moderated. Manufacturing and housing market improved, while labor market and consumer spending remained soft.
The U.K. Office for National Statistics said exports rose by 5 percent in July, the largest increase since January 2008. Other reports showed U.K. consumer confidence improved further in August and house prices stabilized.
The U.S. currency was still under pressure from a United Nations report which called for new global currency to replace dollar. Investors also worried that China may accelerate reserve diversification, which would undermine the dollar in long term.
The euro bought 1.4542 dollars in late New York trading compared with 1.4490 dollars it bought late Tuesday. It touched 1.46 dollars during the session, the highest level since this year. The pound rose to 1.6530 dollars from 1.6487 dollars.
The dollar rose slightly to 1.0812 Canadian dollars from 1.0807 Canadian dollars, and fell to 1.0421 Swiss francs from 1.0472 Swiss francs. It fell to 92.13 Japanese yen from 92.27 Japanese yen.