The dollar rebounded on Wednesday amid stronger-than-expected U.S. worker productivity data and hawkish comments from a Federal Reserve official.
The Labor Department reported Wednesday that productivity, the amount of output per hour of work, increased at an annual rate of 2.2 percent in the first quarter, higher than the 1.5 percent increase which had been expected.
In a sign that inflation could be easing, labor cost pressures slowed a bit. Unit labor costs rose at an annual rate of 2.2 percent, down from a 2.8 percent rise in the final three months of last year.
The Federal Reserve must be ready for "timely" increases to benchmark interest rates given a troublesome inflation outlook and an economy that looks poised for stronger growth in the second half of 2008, Kansas City Fed President Thomas Hoenig said on Tuesday.
Hoenig's comments increased expectations that the U.S. central bank's cycle of aggressive interest rate cuts may be nearing an end.
The dollar also enjoyed a boost against the European currencies from weak data out of Europe and Britain.
European retail sales declined 1.6 percent in March, the most since at least 1995 and twice as much as economists forecast, as soaring fuel and food costs sapped consumer spending.
British manufacturing output fell in March at its sharpest rate in six months as a drop in car production led a broad-based retreat after a strong start to the year.
The euro bought 1.5401 dollars in late New York trading compared with 1.5533 dollars it bought late Tuesday. The British pound fell to 1.9531 dollars from 1.9730 dollars.
The dollar rose to 1.0550 Swiss francs from 1.0504 Swiss francs, and rose to 105.26 Japanese yen from 104.71 Japanese yen. It rose to 1.0068 Canadian dollars from 1.0024 Canadian dollars.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article