Skip navigation
Watchlist Sponsored By :

Current DateTime: 04:00:04 05 Jul 2009
LinksList Documentid: 24355697
  • Collection of Michael Jackson

      Earlier this year, Jackson sought to auction his personal items. Although it never came through, here's a look at what was almost sold.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.

  • How Much For A T-Bone Steak?

      From the cost of a T-bone steak to a monthly phone bill, the price for everyday items can vary dramatically across the country.


Current DateTime: 04:00:04 05 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

By: AP | 04 Jun 2008 | 04:05 PM ET
Text Size

The dollar was mixed on Wednesday as a report on the U.S. service sector indicated a less severe downturn and retail sales in Europe dipped unexpectedly.

The economic data comes a day after Federal Reserve Chairman Ben Bernanke's made his strongest expression of concern yet over the greenback's slide.

The 15-nation euro [EUR-TN  Loading...      ()   ] was near flat against the dollar. The pound [$$GBPUSD  Loading...      ()   ] sank against the greenback from Tuesday's level of $1.9658.

The U.S. service sector grew at a better-than-expected pace in May but slower than in April, suggesting that higher prices for food and fuel may be crimping business in retail, entertainment and agriculture.

The Institute for Supply Management said Wednesday that its service sector index was 51.7 in May, following a stronger-than-expected reading of 52 for April. Wall Street economists surveyed by Thomson Financial/IFR had expected a reading of 50.3 in May.

Playing Currencies Markets?

A reading above 50 indicates the sector, which comprises roughly 80 percent of the total economy, is growing.

Retail sales fell sharply in April for the 15 nations that use the euro, the EU's statistics agency said Wednesday, with consumers using far more of their take-home pay to buy food and fuel.

On Tuesday, Bernanke said inflation had become a more prominent concern, suggesting that the string of recent U.S. interest-rate cuts may be over.

The dollar has been weighed down over recent months by the Fed's aggressive rate cuts as it tries to boost a faltering economy.

Lower interest rates often weigh on a country's currency as investors transfer funds to higher-yielding assets.

"Currency markets are certainly responding well to Bernanke's comments yesterday regarding shifting the focus onto strengthening the dollar, with gains being seen across the board as a result," said James Hughes, an analyst with CMC Markets in London.

The ECB and Bank of England both are expected to keep their interest rates unchanged when they meet on Thursday.

The dollar was up slightly against the yen [JPY-TN  Loading...      ()   ].

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tools:
Print EmailAdd This share icon


Current DateTime: 01:04:45 05 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:05:47 05 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 01:04:45 05 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:47 05 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters