23.05.2008 11:56

Asian session: dollar closes week lower for a third time

The dollar headed for a third weekly decline against the euro as the U.S. housing slump and record oil prices slow growth in the world's biggest economy.

The currency also traded near the weakest level in a month versus the Swiss franc before an industry report today that may show U.S. home sales fell for a second month. The U.S. home resales declined 1.6 percent to a 4.85 million annual rate in April, according to the median estimate in a survey.

The euro headed for its biggest weekly gain in two months against the dollar and a second weekly advance versus the yen on speculation the economies of the 15 countries that share the currency will withstand record high oil prices, lessening the need for a reduction in interest rates.

EUR/USD traded within $1.5710/30.
GBP/USD consolidated in $1.9780/1.9810.
USD/JPY was bounded in Y103.95/104.20.

European data for Friday continues at 0800GMT by the Eurozone May flash manufacturing and services PMIs. Manufacturing is seen slipping to 50.3 with services also slipping to 51.7 for the flash measure. UK data at 0830GMT sees the index of services data as well as the second release of Q1 GDP, which is expected to remain unrevised at 0.4% q/q and 2.5% y/y.
US data sees just existing home sales for April at 1400GMT, which are expected to slow to a 4.85 million annual rate in April.