U.S. dollar rebounds on better U.S. consumer confidence

BY    2013-05-19 07:29:04

  NEW YORK, May 17 (Xinhua) -- The U.S. dollar on Friday made a notable rebound against major currencies after data showed U.S. consumer confidence improved.

  U.S. consumer sentiment index in May stood at 83.7, well above the market consensus of 78.0, according to a joint survey released by Thomson Reuters and University of Michigan. The reading was the highest level in nearly six years.

  The Conference Board, a business research organization, also monitored a rise of 0.6 percent in its composite index of leading indicators in April, which beat economists' estimates of a 0.3- percent increase. The index dropped 0.1 percent in March.

  The favorable reports boosted the dollar index, which tracks the value of the dollar against six other major trading currencies, to the level of 84.37, the highest in about three years.

  Following a sharp decline in the previous trading day, the greenback broke through the level of 103 against the Japanese yen.

  Japanese government data released on Thursday showed that in the first quarter of the year, the country's economy grew at a rate of 0.9 percent from the previous quarter and an annualized rate of 3.5 percent, higher than the market projection.

  Japanese Prime Minister Shinzo Abe has been pushing forward aggressive monetary measures since taking office last December. The Bank of Japan announced a decision on April 4 to purchase 1.4 trillion dollars of bonds in the next two years to fight against the two-decade-long deflation.

  In late New York trading, the euro fell to 1.2828 dollars from 1.2908 dollars of the previous session and the British pound dropped 1.5157 dollars from 1.5307 dollars. The Australian dollar slipped to 0.9734 dollars from 0.9837 dollars.

  The dollar bought 103.22 Japanese yen, higher than 102.05 yen of the previous session. It edged up to 0.9731 Swiss francs from 0. 9614 Swiss francs and went up 1.0285 Canadian dollars from 1.0168 Canadian dollars of the previous trading day.

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