Market info

Dollar mixed on cloudy economic outlook

24 Jun  - Fundamental 

The dollar was mixed against other currencies Thursday amid concerns about the outlook for the U.S. economy.

What prices are doing: The dollar was down 0.1% versus the euro to $1.2327. But it gained 0.2% versus the U.K. pound to $1.4928.

Against the Japanese yen, the dollar was down 0.3% to ¥89.52.

What's moving the market: The dollar came under pressure in the previous session after the Federal Reserve issued an assessment of the economy that disappointed some investors.

As expected, the central bank held interest rates steady near zero percent.

But Fed policymakers said in a statement that economic growth is likely to stay moderate for a while, although activity has improved. In addition, they were concerned about the weakness in the housing market and the «less supportive» financial conditions as a result of the European debt crisis.

«The statement was slightly more pessimistic than previously with comments that financial conditions were now less supportive of growth,» currency analysts at Sucden Financial said in a research report.

Economic reports out Thursday were mixed.

The Labor Department said the number of Americans filing new claims for unemployment fell to 457,000 last week from a revised 472,000 in the previous week.

Durable goods orders fell 1.1% in May, the Commerce Department reported. That was better than the 1.3% drop that was expected. Orders rose 3% in April.

But orders excluding transportation rose 0.9% in May versus forecasts for a rise of 1.3%. Orders ex-transportation fell 0.8% in the previous month.

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