September 18, 2009
The U.S. dollar fell against the euro but rose against the pound on Thursday amid mixed economic data from the U.S. and the U.K..
U.S. housing starts rose 1.5 percent to an annualized rate of 598,000 units in August, the Commerce Department reported. It was the highest level in nearly nine months, but slightly lower than expected. New building permits rose 2.7 percent in August, also missing expectations.
Single family starts, the most important indicator of production in the housing sector, were down 3 percent. Analysts said the drop of single family starts in August is likely to prove a temporary pause on a generally stronger trajectory.
Initial claims for unemployment insurance benefits fell by 12,000 to 545,000 last week, the U.S. Labor Department said. Analysts have expected an increase of 13,000. The four-week average of initial claims fell slightly, while continuing claims edged up.
The dollar fell against the euro as the reports reduced safe-haven demand for the U.S. currency. But it rose against the pound after weaker-than-expected U.K. retail sales data cast doubt on the strength of the recovery in British consumer spending. Some analysts speculated that the Bank of England may expand its quantitative easing program to stimulate the economy, bringing fresh downward pressure to the pound.
The euro bought 1.4749 dollars in late New York trading compared with 1.4723 dollars it bought late Wednesday. The pound fell to 1.6448 dollars from 1.6493 dollars.
The dollar fell to 1.0645 Canadian dollars from 1.0664 Canadian dollars, and fell to 1.0281 Swiss francs from 1.0312 Swiss francs. It rose to 91.15 Japanese yen from 90.90 Japanese yen.