US Dollar and Stock Market Supported by Citigroup Quarterly Results
The U.S. Dollar edged slight against major currencies in midday trading in London due to less than expected loss for the second quarter by CitiGroup, which calmed some jitters about the health of the U.S. financial sector.
CitiGroup, which is the biggest bank in the United States, reported a loss of $0.49 per share compared to a forecasted loss of $0.61 to $0.67 per share. In addition to aiding the U.S. Dollar, results of CitiGroup’s second quarter performance caused stock markets to surge and Euro government bond fell to season lows.
The U.S. Dollar also benefited from the announcement in the Financial Times which said that the U.K. Treasury is planning to make some changes to its fiscal rules. If these changes are implemented, the U.K. Treasury can increase its borrowing as a means of reducing the impact of anticipated economic slowdown.
According to the Wall Street Journal, Freddie Mac, the giant U.S. mortgage lender, is considering raising additional capital by selling approximately $10 billion in additional shares.
At 11:12 GMT in London, the Pound Sterling fell by 0.3% to $1.9949 while the U.S. Dollar edged 0.3% against the Yen to 106.63 Yen. The Euro fell 0.1% to $1.5839.