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Dollar lower vs. yen, higher vs. euro after USD GDP revision

Published 06/26/2013, 11:03 AM
Updated 06/26/2013, 11:03 AM

Investing.com - The dollar fell to session lows against the yen and hit session highs against the euro on Wednesday after a downward revision to U.S. first quarter growth fuelled uncertainty over the direction of U.S. monetary policy.

During U.S. morning trade, the dollar hit fresh session lows against the yen, with USD/JPY down 0.40% to 97.37.

The Commerce Department said U.S. gross domestic product expanded at an annual rate of 1.8% in the three months to March, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.

The report said consumer spending was revised down from 3.4% to 2.6%.

Last week Fed Chairman Ben Bernanke said the bank could begin tapering its bond buying program by the end 2013 if the economy continued to pick up as the central bank expected.

Elsewhere, the dollar hit fresh three-week highs against the euro, with EUR/USD down 0.55% to 1.3005.

Earlier Wednesday, European Central Bank President Mario Draghi said monetary policy will remain accommodative for the foreseeable future and urged euro zone political leaders to implement economic reforms in order to spur growth.

The greenback also fell to three-week lows against the pound, with GBP/USD down 0.55% to 1.5337.

The Bank of England’s financial stability report warned banks, insurers and borrowers of the dangers of sharp rises in interest rates on Wednesday and said the financial crisis in the euro zone still posed a threat to the U.K. economy.

The dollar hit three-week highs against the Swiss franc, with USD/CHF advancing 0.42% to 0.9420.

The greenback extended losses against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.57% to 0.9312, NZD/USD rallying 1.15% to 0.7827 and USD/CAD falling 0.39% to 1.0472.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.41% to 83.13.

Finance ministers from the European Union were to hold talks in Brussels later Wednesday to discuss Europe’s banking union plans.



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