The greenback was weakening against the euro and the pound Wednesday as new data showed continuing softness in the housing sector.
Euros were selling for $1.3644, up from $1.3604 late Tuesday. British pounds were buying $2.0178, up from $2.0142 a day earlier.
The National Association of Realtors said its index of pending home sales slid 12.2% in July when compared with a month earlier. On a year-over-year basis the drop was even higher, down 16.1%.
"The figures sound dreadful," says Lawrence Krohn, an economist with Standard New York Securities in New York City. "But it means the prospects for
ease have gone up slightly. The Fed meets again Sept. 18.
Such a move by the Fed would undoubtedly be a negative for the value of the greenback as foreign exchange investors would likely switch their holdings to other currencies with better expected returns.
The exchange-traded funds that track the various currencies were moving in line with action in the spot forex market. The
CurrencyShares British Pound Sterling Trust
CurrencyShares Euro Trust
were both rising about 0.3% in recent market activity.
In other currencies, the dollar was falling to 115.24 Japanese yen from 116.24 yen previously.
CurrencyShares Japanese Yen Trust
was falling 0.5%.
Elsewhere, the New Zealand dollar was softer on expectations the country's central bank will lean toward a more accommodative monetary policy. One dollar was buying NZ$1.4518 vs. $1.4391 a day earlier.