The yen fell
to a one-month low against the euro and dropped versus the dollar as investors
added to holdings of higher-yielding assets funded in Japan's currency.
The yen's decline against the Australian and New Zealand dollars, two favorites
of so-called carry trades, began earlier as Asian stocks rallied. Australia's dollar traded close to a 25-year
high versus its U.S.
counterpart, while the kiwi dollar gained a sixth straight day. The U.S. dollar
extended gains versus the yen and euro as new-home sales in the U.S.
unexpectedly rose in April.
The euro reversed gains versus the
dollar after reports showed German consumer confidence fell more than
economists forecast and French business confidence declined to the weakest in
more than two years in May.
The dollar extended gains as new-home sales in the U.S. rose 3.3 percent to an annual
pace of 526,000 from a 509,000 rate the prior month that was the lowest in 17
years, Commerce Department data showed. A separate report today showed home
prices dropped last quarter by the most in at least 20 years.
Confidence among U.S.
consumers fell to the lowest level in more than 15 years. The Conference Board's
confidence index declined more than forecast to 57.2, the lowest level since
October 1992, from a revised 62.8
in April, the New York-based research group said.
EUR/USD printed
high on $1.5820 before falling to $1.5670, triggering stops.
GBP/USD tested
$1.9840 before sliding to $1.9710. Later rate set stable within the $1.9725/80
range.
USD/JPY rose
from Y103.20 to Y104.40.
Today’s focus on US Durable goods orders at 12:30 GMT. At 15:45 GMT Germany CPI report is schedule to come.