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Dollar recovers from U.S. data, rises broadly

Published 04/27/2015, 06:21 AM
© Reuters.  Dollar strengthens vs. counterparts after recent downward trend
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Investing.com - The dollar was broadly higher against a basket of other major currencies on Monday, as the greenback recovered from the previous week's downbeat U.S. economic reports.

The dollar had come under pressure after the Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.

The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.

The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.

The weak data led investors to push back expectations on the timing of an initial rate hike by the Federal Reserve.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% to 97.40.

EUR/USD slid 0.42% to 1.0829.

The single currency remained under pressure after euro area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.

The pound was also lower, with GBP/USD down 0.41% to 1.5126.

The Confederation of British Industry earlier reported that its index of industrial order expectations increased by 1.0 point to a reading of 1.0 this month from March’s reading of 0.0. Analysts had expected the index to rise by 4.0 point to 4.0 in April.

Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.22% to 119.25 and with USD/CHF adding 0.20% to 0.9564.

The Australian dollar was fractionally lower, with AUD/USD easing 0.09% to 0.7815, while NZD/USD edged up 0.18% to 0.7607.

USD/CAD slipped 0.09% to trade at 1.2166.

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