The U.S. dollar exhibited weakness against its major counterparts on Wednesday, reacting to the latest batch of economic data.
According to a report released by the Labor Department, import prices in the U.S. showed another notable increase in the month of March, surging up by 1.2%, after jumping by 1.3% in February. Economists had expected import prices to climb by 1%.
The report also said export prices soared by 2.1% in March after shooting up by 1.6% in February. Export prices were expected to increase by 1%.
Economic activity in the U.S. accelerated to a moderate pace from late February to early April, according to the Federal Reserve’s Beige Book.
The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, highlighted improvement in a variety of areas, including consumer spending, auto sales and manufacturing activity.
The Fed also noted reports on tourism were more upbeat, bolstered by a pickup in demand for leisure activities and travel.
Contacts attributed the increase in demand to spring break, an easing of pandemic-related restrictions, increased vaccinations, and recent stimulus payments, among other factors.
The report also said job growth picked up over the reporting period, with most districts noting modest to moderate increases in employment.
The dollar index slid to 91.57 a little past noon and recovered a bit to 91.65 as the day progressed, but was still notably down from Tuesday’s close of 91.85.
Against the Euro, the dollar was trading at $1.1981 a little while ago, down 0.26% from previous close. Eurozone industrial output declined 1% month-on-month in February and fell 1.6% compared to February 2020, Eurostat said.
The Pound Sterling was stronger, fetching $1.3777 a unit, about 0.2% more than Tuesday’s close.
The Yen was stronger at 108.93 a dollar, firming up by about 0.12%.
The Aussie was stronger with the AUD-USD pair at 0.7723, more than 1% up from previous close.
Swiss franc weakened to 0.9229 a dollar from 0.9209, while the Loonie was stronger at 1.2519 a dollar, compared with 1.2535 on Tuesday.
The material has been provided by InstaForex Company – www.instaforex.com