Exchange Rate Update- US Dollar Declines Against Euro, Yen
The Euro appreciated against the US Dollar, as the Greenback declined against 15 out of 16 of its major trading currencies. The EURO-USD exchange rate increased by 0.88 percent to 1.4270.
Growth in consumer spending in the US rose by 0.5 percent in April, which is the smallest rise in consumer spending in three months. Also, pending home sales declined by 1 percent in April, along with the initial jobless claims increasing to 424,000 people last week. All of these are indicators of a sluggish US economy, which has resulted in an atmosphere of selling the Greenback, contributing to its depreciation.
The USD-JPY exchange rate fell by 0.3309 percent to 81.0183. The decline of the US Dollar against Asian currencies was also spurred by an increase in Asian stocks, which led to a move towards riskier, higher yielding assets and a subsequent decline in the demand of the Greenback.