The US$ fell against most major currencies Thursday as US economic growth was stronger than expected in Q-3. Real gross domestic product (GDP) grew a 3.5% annual rate in Q-3, stronger than most expectations, according to the US Commerce Department. It was the 1st increase after 4 Q’s of contraction. The report indicated that US has emerged from its longest and deepest recession in the post-war period. US Senators agreed Wednesday to extend the tax credit for 1st time home buyers and to offer a reduced credit to some repeat buyers. Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan gave their support to the extension Thursday. The credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide, Geithner and Donovan said in a statement. The Euro has been sliding in previous sessions as weak economic reports hurt hopes for recovery. The single currency rebounded Thursday as risk appetite picked up.
The Euro bought 1.4845 $’s in late New York trading compared with 1.4719 $’s it bought late Wednesday. The GBP rose to 1.6548 $’s from 1.6413 $’s.
The US$ fell to 1.0662 Canadian dollars from 1.0790 Canadian dollars, and fell to 1.0181 Swiss francs from 1.0261 Swiss francs. It rose to 91.49 Japanese yen from 90.79 Japanese yen.
-Paul A. Ebeling, Jnr. www.livetradingnews.com
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