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Dollar lower after U.S. housing data

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Shutterstock photo - The broadly weaker dollar fell to session lows against the euro and the yen in thin trade on Monday after data showed that U.S. existing home sales fell unexpectedly in June, but remained close to three-and-a-half year highs.

During U.S. morning trade, the dollar was down against the yen, with USD/JPY falling 1.17% to 99.42.

The National Association of Realtors said that existing home sales fell 1.2% to a seasonally adjusted annual rate of 5.08 million units in June, the second highest level since November 2009.

Analysts had expected U.S. existing home sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

The report said sales were 15.2% from a year earlier in June, while average house prices jumped 13.5% on a year-over-year basis, indicating that the recovery in the housing sector is continuing.

The yen remained higher following Sunday's elections in Japan's upper house, which gave Japanese Prime Minister Shinzo Abe's ruling coalition a majority in both houses of parliament.

The majority will allow Prime Minister Abe to continue to push through a series of structural reforms aimed at spurring economic growth and fighting deflation.

The dollar was also lower against the euro, with EUR/USD climbing 0.45% to 1.3198.

The single currency was boosted as the yield on Portuguese 10-year bonds fell to 6.4% earlier Monday from 6.92% at the close of trade on Friday, after political leaders resolved a deadlock that had threatened to derail the country's EUR78 billion bailout program.

Elsewhere, the dollar drifted lower against the pound and the Swiss franc, with GBP/USD rising 0.67% to 1.5369 and USD/CHF down 0.69% to 0.9349.

The greenback was weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.73% to 0.9246, NZD/USD up 0.37% to 0.7959 and USD/CAD losing 0.24% to trade at 1.0341.

The New Zealand dollar had been lower earlier in the day following a magnitude 6.5 earthquake in Wellington on Sunday.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.56% to 82.26. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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