Investors Await Fresh Leads from FOMC
Investors are waiting for the outcome of the FOMC meeting and the accompanying statement to assess the direction of interest rates. Consequently, the U.S. dollar traded in tight ranges in Tokyo on Wednesday against major currencies.
Following more poor housing data from the U.S., coupled with very low consumer confidence, the U.S. Dollar dropped overnight to 107.36 Yen; the Euro surged to $1.5622. The Euro also traded in narrow ranges against major currencies as investors await fresh news from the Fed.
On June 25, 2008, at 01:00 pm (04:00 GMT) in early trading in Sydney, the U.S. dollar traded at 107.78 Yen compared to 107.80, while the Euro traded at $1.5571, as compared to $1.5565 in late trading in New York.
The index which measures U.S. consumer confidence fell to 50.4 from 58.1 in May, the 6th consecutive monthly fall. According to the S&P/Cash-Shiller index, the U.S. home prices dropped in April at an unprecedented pace since 2000. All the 20 metropolitan areas which were measured reported annual decline for the first time.
On Tuesday, oil prices increased by 26 cents to $137 a barrel on the N.Y. Mercantile Exchange as investors are concerned about inflation and global economic growth.