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Dollar mixed after Bernanke, U.S. housing data

Published 07/17/2013, 09:07 AM
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Investing.com - The dollar was mixed against the other major currencies on Wednesday after Federal Reserve Chairman Ben Bernanke said the central bank still expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”

During European afternoon trade, the dollar was little changed against the euro, with EUR/USD inching up 0.01% to 1.3163, off session lows of 1.3052.

Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that accommodative monetary policy will still be necessary for the foreseeable future.

The comments came during prepared testimony to the Financial Services Committee in Congress.

Meanwhile, official data showed that the number of building permits issued in the U.S. fell unexpectedly in June, while housing starts tumbled.

The number of building permits issued in June fell 7.5% to a seasonally adjusted 0.911 million, confounding expectations for an increase of 1.5% to 1.000 million units.

U.S. housing starts plunged by 9.9% last month to hit a seasonally adjusted 0.836 million, compared to expectations for an increase of 3.9% to 0.959 million.

Elsewhere, the dollar was near session lows against the pound, with GBP/USD rising 0.60% to 1.5245.

The pound strengthened broadly on Wednesday after the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged.

Two policymakers who had previously voted in favor of more stimulus said it remained "warranted".

 Also Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. fell by a seasonally adjusted 21,200 in June, better than expectations for a decline of 8,000.

The rate of unemployment held steady at 7.8% in May, in line with expectations and unchanged from April.

The dollar trimmed gains against the yen, with USD/JPY up 0.39% to 99.47, off session highs of 99.89.

Earlier Wednesday, the minutes of the Bank of Japan’s June meeting said the economy was expected to return to a moderate recovery path and reiterated that the bank’s easing program would remain in place for as long as necessary.

The dollar edged lower against the Swiss franc, with USD/CHF sliding 0.10% to 0.9379.

The greenback came off lows against its Australian and New Zealand counterparts, with AUD/USD up just 0.06% to 0.9256, down from highs of 0.9274 NZD/USD up 0.08% to 0.7898 after rising as highs as 0.7926.

The greenback was fractionally higher against the Canadian dollar, USD/CAD inching up 0.02% to 1.0368, down from session highs of 1.0408.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.12% to 82.54.




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