Dollar Trades Near Two-Week Low Versus


The dollar traded near the lowest level in more than two weeks against the euro before an industry report this week that may signal the worst housing slump in a quarter of a century is deepening.

The currency fell the most against the Canadian dollar and the Mexican peso before the report May 23 that is forecast to show home sales dropped for a second month.

The dollar traded at $1.5576 per euro at 7 a.m. in New York, from $1.5577 late May 16, when it weakened to $1.5601, the lowest since May 1. The U.S. currency bought 103.84 yen, from 104.04. The euro was at 162.09 yen from 162.27.

U.S. home resales declined 1.6 percent to a 4.85 million annual rate in April, according to the median estimate of economists surveyed by Bloomberg News before a May 23 report from the National Association of Realtors.

The U.S. dollar last week fell the most against the euro since March as a slide in consumer confidence to a 28-year low and record oil prices raised concern U.S. economic growth will slow.

The Dollar Index traded on ICE futures in New York, which tracks the dollar against currencies of six trading partners, fell to 72.788 today, from 72.844 on May 16.

Losses in the U.S. dollar may be limited by speculation minutes from the Federal Reserve's meeting last month will show policy makers are concerned that rising commodity prices will fan inflation. The Fed on May 21 will release minutes of its April meeting, where the policy-setting Federal Open Market Committee cut the benchmark interest rate by a quarter point to 2 percent.


TradingEconomics.com, Bloomberg
5/19/2008 6:18:26 AM