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Dollar steadies after unexpected rise in US existing home sales

Investing.com -

Investing.com - The dollar steadied against a basket of global currencies, after data showed sales of existing U.S. homes unexpectedly rose in May while a surge in the pound limited upside momentum.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, fell by 0.07% to 97.33.

The National Association of Realtors said strong demand and inexpensive mortgages were driving up prices at an unsustainable rate, as sales of existing homes rose 1.1% in May to an annual rate of 5.62 million.

Analysts had forecast U.S. existing home sales to decline by 0.5%.

The unexpected increase in existing home sales spurred sentiment on the dollar, after the greenback fell to session lows pressured by a surge in the pound, following bullish comments on an interest rate hike from the Bank of England chief economist Andy Haldane.

Haldane said he might join those calling for a rate rise in the coming months, adding that a "partial of withdrawal" of the additional policy measures would be prudent "relatively soon".

GBP/USD rose to a session high of $1.2710 but gains were pared later during the session, as investors appeared to take profit.

EUR/USD tacked on 0.12% to $1.1148, while EUR/GBP fell by 0.18% to 0.8800.

USD/CAD traded at C$1.3335, up 0.51%, as a falling oil prices continued to weigh on the oil-linked Canadian dollar.

The dollar traded roughly flat against its Japanese counterpart, with USD/JPY at Y111.39.

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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.


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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