BLBG: Dollar Tumbles Against Yen, Euro After Weaker-Than-Forecast Economic Data
The dollar dropped against the yen and euro as the U.S. economy grew less than economists forecast and jobless-benefit claims unexpectedly increased.
The common currency snapped four days of losses against the Swiss franc, climbing from a record low, after European Central Bank President Jean-Claude Trichet said policy makers are “carefully” monitoring inflation. The statement fueled bets Europe’s economy is strong enough to withstand increased interest rates.
“The consumption number is poor, the claims number is bad,” Jessica Hoversen, a New York-based analyst at the futures broker MF Global Holdings Ltd., said of the U.S. data. “It shows erosion of growth.”
The dollar tumbled 0.9 percent to 81.25 yen at 9:06 a.m. in New York. The euro rose 0.7 percent to $1.4185 after depreciating to $1.3970 on May 23, the weakest since March 17. The common currency fell 0.2 percent to 115.23 yen. The euro rose 0.1 percent against the Swiss franc to 1.223.
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
