BS: Dollar Falls Versus Yen as Economic Pace Is Less Than Forecast
Dec. 22 (Bloomberg) -- The dollar declined to a one-week low against the yen after reports showed U.S. economic growth and existing homes sales increased less than forecast, damping demand for U.S. denominated assets.
The greenback fluctuated versus its major counterparts after the Commerce Department said gross domestic product rose at a 2.6 percent annual rate in the third quarter, compared with the 2.8 percent pace forecast in a Bloomberg News survey. The euro gained earlier as German import prices in November climbed the most in a decade. The Swiss franc strengthened to a record against the common currency for a sixth day on refuge demand link to the euro zone’s sovereign-debt crisis.
“This was weaker than expected, it’s a disappointing report” on housing, said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $20 trillion in assets under administration.
The dollar fell 0.3 percent to 83.48 yen at 10:30 a.m. in New York, the lowest since Dec. 14 from 83.75 yesterday. It gained 0.1 percent to $1.3090 per euro, from $1.3100 yesterday.
Existing home purchases increased 5.6 percent to a 4.68 million annual rate, the National Association of Realtors said in Washington. Economists projected sales would rise to a 4.75 million pace, according to the median forecast in a Bloomberg News survey.
--Editors: Paul Cox, Greg Storey
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
