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U.S. dollar retreats on Fed official's dovish comments

NEW YORK
2023-10-17 05:45

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NEW YORK, Oct. 16 (Xinhua) -- The U.S. dollar retreated in late trading on Monday, after Philadelphia Federal Reserve President Patrick Harker said the current level of interest rates has nearly killed off access to the housing market for "first-time home buyers."

The dollar index, which measures the greenback against six major peers, fell 0.37 percent to 106.2488 in late trading.

In a speech to the Mortgage Bankers Association's annual convention on Monday, Harker said when it comes to housing, "the climate could be crystallized in seven words, which one of those contacts said to me recently: 'There are no first-time home buyers.'"

He also reiterated comments made on Friday that "I believe that we are at the point where we can hold rates where they are."

The U.S. headline general business conditions index fell seven points to -4.6, according to firms responding to the October 2023 Empire State Manufacturing Survey released on Monday. The index for number of employees rose six points to 3.1, and the average workweek index edged up to 2.2, indicating a slight increase in employment levels and hours worked.

Bank of England Governor Andrew Bailey said on Friday that future rate decisions would continue to be tight.

In late New York trading, the British pound rose to 1.2212 U.S. dollars from 1.2135 dollars in the previous session. Investors are also focusing on the UK employment data on Tuesday, followed by inflation on Wednesday and retail sales on Friday.

The euro was up to 1.0554 U.S. dollars from 1.0511 dollars in the previous session, and with the Canadian dollar catching some relief after Friday's risk-off bids sent the Loonie sharply lower against the U.S. dollar, the U.S. dollar decreased to 1.3617 Canadian dollars from 1.3658 Canadian dollars.

The U.S. dollar bought 149.5270 Japanese yen, higher than 149.5050 Japanese yen of the previous session. The U.S. dollar was down to 0.9003 Swiss francs from 0.9012 Swiss francs, and it was down to 10.9178 Swedish krona from 11.0126 Swedish krona.
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