Greenback slips slightly as equities gain

Posted On: September 19, 2012
The value of the U.S. dollar dropped moderately on Wednesday against the shared currency of the European Union and other rival currencies after economic data from the U.S. pushed equities higher, according to MarketWatch.

Impacting forex markets on Wednesday was the Bank of Japan's surprise announcement as the trading session began. The central bank of the Pacific Rim nation is set to widen the scope of its stimulus program. The ICE dollar index, a gauge of the value of the greenback against six competing currencies, slightly dropped from Tuesday eve to Wednesday morning.

"Investors had been aware of the possibility of such a move but it had not been fully priced into the market. Consequently, the yen took a hit when the BOJ made its announcement," strategists with Moneycorp in London indicated, according to MarketWatch.

U.S. stocks climbed as the world's reserve currency relinquished increases following reports noting rises in existing home sales and new home construction.

Reuters reports the housing data is indicative of a recovery as the world's largest economy pulls itself up following the Great Recession.

Category: Industry News

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