LONDON, May 16: The dollar firmed against the euro on Wednesday as data on US housing starts and industrial production came in above expectations. In late European trading, the euro was changing hands at $1.3515, from $1.3590 in New York late on Tuesday.
The dollar climbed to 120.81 yen, from 120.23 yen on Tuesday.
Figures from the US commerce department showed the number of new homes beginning construction rose 2.5 per cent in April from March to 1.528 million units, its highest level for three months. Analysts had been expecting a fall to 1.48 million units.
“The dollar has rallied across the board as traders focus on the persistent strength in housing starts, shrugging off the more forward-looking permits,” Ashraf Laidi, currency analyst at CMC Markets was quoted as saying by Thomson Financial’s AFX wire.
The dollar was also boosted by strong industrial production figures for April, which were boosted by cooler US weather during the month.
On the London Bullion Market, the price of gold dropped to $667.75 per ounce, from $668.25 late on Tuesday.—AFP
