Dollar lower vs. euro, pound after U.S. GDP, rises against yen

Published 12/20/2012, 09:06 AM
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Investing.com - The U.S. dollar turned lower against the pound and the euro on Thursday and re-approached 20-month highs against the yen after data showed that U.S. economic growth was revised up in the third quarter.

During European afternoon trade, the greenback was trading close to seven-and-a-half month lows against the euro, with EUR/USD rising 0.45% to 1.3285.

Revised data showed that U.S. gross domestic product increased at a seasonally adjusted annual rate of 3.1% in the three months to September, up from a preliminary estimate of 2.7% and above expectations for growth of 2.8%.

In a separate report, the U.S. Department of Labor said the number of people who filed for unemployment assistance last week rose by 17,000 to 361,000, compared to expectations for an increase of 13,000 to 357,000.

The dollar trimmed losses against the yen, with USD/JPY down 0.16% to 84.27, off session lows of 83.86.

The BOJ expanded the size of its asset-purchase program by JPY10 trillion to JPY101 trillion on Thursday, but stopped short of adopting a 2% targeted inflation rate, despite calls from incoming Prime Minister Shinzo Abe for the bank to implement more aggressive measures to combat deflation.

The greenback was trading close to three-month lows against the pound, with GBP/USD up 0.26% to 1.6287.

Earlier Thursday, official data showed that U.K. retail sales were flat in November, compared to expectations for a 0.3% increase.

The greenback hit fresh seven-and-a-half month low against the Swiss franc, with USD/CHF falling 0.46% to 0.9090.

The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.09% to 0.9879, AUD/USD inching up 0.03% to trade at 1.0484 and NZD/USD edging up 0.02% to 0.8341.

In Canada, official data showed that retail sales rose 0.7% in October, beating expectations for a gain of 0.1%.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.37% to an almost two-month low of 79.08.

The U.S. was to data on manufacturing activity in Philadelphia as well as a report on existing home sales later in the trading day.


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