The
dollar fell against the yen and euro after the International Monetary
Fund said the U.S. housing slump still poses ``serious risks'' to
financial markets.
The currency declined against the
Swiss franc and British pound before private and industry reports this
week that may show the housing market is worsening. The euro gained
after a report showed German producer-price inflation accelerated. The
Australian dollar rose to its highest level in 24 years after minutes
of the central bank's last meeting signaled policy makers considered
raising rates.
The euro gained against the
dollar after a government report showed German producer-price
inflation, an early indicator of price pressures in the economy,
accelerated to the fastest pace in almost two years in April on energy
costs.
Prices for goods from newsprint to plastics
increased 5.2 percent from a year earlier, the most since August 2006,
the Federal Statistics Office in Wiesbaden said today. Economists
expected a 4.7 percent gain
Center for European
Economic Research said its index of investor and analyst expectations
declined to minus 41.4, from minus 40.7 in April. Economists expected a
gain to minus 37, according to the median of 41 forecasts in a The
single currency briefly pared earlier gains after an industry report
showed Investor confidence in Germany unexpectedly fell. The gauge reached a 15-year low of minus 41.6
in January. A negative reading means that pessimists outnumber
optimists.
EUR/USD traded within
$1.5500/40 before buying from a major US name and a German bank
provided added momentum as the pair pushed on to $1.5674 before easing
to $1.5640. Offers rest at $1.5670/80, $1.5695/1.5705, bids located
around $1.5570 and $1.5550
GBP/USD firmed from $1.9530 to $1.9670. Offers $1.9680, $1.9695/05, $1.9725. Cable bids $1.9590/70, $1.9550.
USD/JPY bounsed from Y103.70 to Y104.15. Offers Y104.50, Y104.70, bids Y103.60.
PPI data at 1230GMT leads the US releases and is expected to rise
0.4%in April on an increase in energy prices and a smaller, but still
solid,rise in food prices. Core PPI is forecast to rise 0.2%. The
weekly Redbook data is then due at 1255GMT.