Corporate foreign exchange news

Dollar falls ahead of reports

Wednesday, 19 January 2011 09:01:14 GMT

Published by Mark Smith-Halvorsen
The dollar has fallen in foreign exchange trading ahead of the release of reports set to show ongoing problems in the US labour and housing markets.
Figures due to be released this week are set to show a decline in the total number of housing starts during December, while jobless claims are also predicted to have risen.
Aside from the downward pressure on the dollar as a result of these factors, the currency also fell against China's yuan as talks between the US and Chinese presidents get underway.
The US has called for the yuan to be allowed to rise faster. An artificially low rate can help to support Chinese companies in global trade.
Hideki Amikura, deputy general manager at Nomura Trust and Banking, told MarketWatch: "Chinese President Hu's visit to the US coincides with what appears to be a shift in sentiment in the market, with more people now looking for the dollar to continue weakening."
He added that the visit could further weaken the greenback. The lack of improvement in the housing and jobs data may also play on the currency's short-term strength.
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