NEW YORK: The dollar was knocked lower on Thursday by a decline in U.S. new-home sales fanning worries about U.S. economic growth, while the euro rose more than 1 percent on waning fears of a Greek default.
New home sales declined 11.4 percent in March to a seasonally adjusted annual rate of 481,000 units, according to U.S. government data. The drop was the biggest since July 2013 and came after three straight months of hefty gains.
Data on Wednesday showed sales of previously owned homes jumping during March to an 18-month high, while applications for home loans last week vaulted to the highest level since June 2013.
Other U.S. data issued on Thursday reported a small rise in weekly jobless claims and a slowing of factory activity this month that fed concerns over the U.S. economy's ability to rebound from early 2015 sluggishness.
"What we have seen so far is a mixed data bag," said Mazen Issa, senior currencies strategist at TD Securities in Toronto. "That is undermining the conviction level that the Fed will be able to gradually remove some stimulus."
The euro, which has been sliding for months on a massive bond-buying program and anxieties about Greece possibly defaulting, rose against the dollar on Thursday despite weaker-than-forecast euro zone private sector business growth.
The euro was last up more than 1 percent against the dollar at $1.0835.
Greek Prime Minister Alexis Tsipras on Thursday called for work to be sped up to conclude a reform-for-cash deal with euro zone creditors to keep his country afloat after talks with German Chancellor Angela Merkel
A Greek official said the leaders noted that "significant progress" had been made to resolving a standoff that could push Greece out of the euro currency block since they last met in Berlin a month ago.
"Maybe there is a glimmer of hope the Greek situation may be resolved," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York. "That supports the euro."
The dollar index of six currencies that trade against the dollar was last off 0.80 percent.
The dollar was down 0.3 percent against the yen to 119.52 yen. The British pound was up 0.02 percent against the dollar at $1.5061.
Comments
Comments are closed for this article.