The greenback was rallying against the European currencies Thursday after the U.S. government revised upward its estimate of second-quarter economic growth.
Euros were trading for $1.3619, down from $1.3673 late Wednesday, while the British pound was selling for $2.0097, down from $2.0181 a day earlier.
The currency exchange-traded funds were moving in line with action in the forex market. The
CurrencyShares Euro Trust
CurrencyShares British Pound Sterling Trust
were both slipping about 0.4% in the morning session.
Earlier, the Commerce Department said gross domestic product rose 4% during the second quarter, up from its prior estimate of 3.4%, but slightly lower than the consensus forecast of 4.1%.
Meg Browne, a senior currency strategist at Brown Brothers Harriman in New York, says that 4% growth "is still a high handle
reflecting a robust economy."
But she adds that the currency moves afterward weren't large, saying market participants were more focused on how the credit market problems will shake out over the coming weeks. Of note, she says, is whether the commercial paper market can recover and whether businesses can continue to borrow and make capital investments.
On the technical side of things, Browne points out that the euro has had difficulty breaking through stubborn chart resistance at around $1.368 over the past few days.
In other notable news, the Bank of England made a 1.6-billion-pound loan to an unidentified borrower, according to a report on
. The action reflects a deteriorating credit market in Britain and likely helped undermine confidence in the British pound.
Elsewhere, the dollar was buying 115.56 yen, down from 116.17 yen previously.
CurrencyShares Japanese Yen Trust
, which moves along with the value of the Japanese currency, was better by 0.4%.