Dollar falls on strong U.S. home sales data
Dollar falls on strong U.S. home sales data
09:14, November 24, 2009 
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The dollar fell against most major currencies on Monday after a report showed that U.S. existing home sales surged 10.1 percent in October.
Weak U.S. housing starts and high delinquency rate for mortgage loans reported last week dampened outlook for housing sector, driving the dollar higher as a safety haven currency. The greenback lost momentum on Monday amid the existing home sales report.
Existing-home sales jumped to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of5.54 million in September, the National Association of Realtors (NAR) reported on Monday. It was the highest reading since February2007.
Sales were up in all four regions, with three regions registered double digit increases. The inventory yardstick, the supply of existing homes at current sales rates, fell from 8.0 months to 7.0 months.
The surge of sales in October was driven by the first-time buyer tax credit, which had been set to expire on November 30. The tax credit has been extended and expanded earlier this month.
"Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November," said NAR chief economist Lawrence Yun.
Analysts of Global Insight expect that existing home sales will drop in the first quarter of 2010, payback from the first tax credit, before picking up in the second quarter. Sales will take a second hit in the third quarter of 2010, payback from the second tax credit. Overall, sales in 2010 will be about the same as in 2009.
The euro bought 1.4973 dollars in late New York trading compared with 1.4857 dollars it bought late Friday. The pound rose to 1.6621 dollars from 1.6481 dollars.
The dollar fell to 1.0553 Canadian dollars from 1.0714 Canadian dollars, and fell to 1.0093 Swiss francs from 1.0182 Swiss francs. It rose to 89.02 Japanese yen from 88.96 Japanese yen.
Source: Xinhua
Weak U.S. housing starts and high delinquency rate for mortgage loans reported last week dampened outlook for housing sector, driving the dollar higher as a safety haven currency. The greenback lost momentum on Monday amid the existing home sales report.
Existing-home sales jumped to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of5.54 million in September, the National Association of Realtors (NAR) reported on Monday. It was the highest reading since February2007.
Sales were up in all four regions, with three regions registered double digit increases. The inventory yardstick, the supply of existing homes at current sales rates, fell from 8.0 months to 7.0 months.
The surge of sales in October was driven by the first-time buyer tax credit, which had been set to expire on November 30. The tax credit has been extended and expanded earlier this month.
"Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November," said NAR chief economist Lawrence Yun.
Analysts of Global Insight expect that existing home sales will drop in the first quarter of 2010, payback from the first tax credit, before picking up in the second quarter. Sales will take a second hit in the third quarter of 2010, payback from the second tax credit. Overall, sales in 2010 will be about the same as in 2009.
The euro bought 1.4973 dollars in late New York trading compared with 1.4857 dollars it bought late Friday. The pound rose to 1.6621 dollars from 1.6481 dollars.
The dollar fell to 1.0553 Canadian dollars from 1.0714 Canadian dollars, and fell to 1.0093 Swiss francs from 1.0182 Swiss francs. It rose to 89.02 Japanese yen from 88.96 Japanese yen.
Source: Xinhua
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