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Dollar Finds Footing As G20 Defers On IMF Cash

Dollar Finds Footing As G20 Defers On IMF Cash

The dollar steadied versus the euro but trimmed its recent gains versus the yen on Monday, after the G20 failed to reach an agreement on boosting the firepower of the International Monetary Fund over the weekend.

Risk aversion returned to the markets this morning, even as Italian borrowing costs fell to their lowest in six months.

Traders remain concerned about the size of the European Central Bank's balance sheet amid rumors that the region's banks will agressively tap a lending program on Wednesday.

The dollar rose to $1.3390 from a 2-1/2 month low of $1.3485 versus the euro.

A leading indicator of the Eurozone economy increased for the second consecutive month in January, data from a survey by Conference Board showed Monday. The leading economic index increased to 104.1 in January from 103.1 in December.

The dollar edged slightly higher to $1.5840 from a 3-week lof of $1.59 versus the sterling. At the same time, the buck eased to Y80.50 versus the yen, ending a strong run that took the dollar to a 7-month peak of Y81.66.

Looking ahead on the U.S. economic calendar, the National Association of Realtors is due to release its pending home sales index for January at 10 am ET. Economists estimate a 1.5 percent increase in the index.

The results of a regional manufacturing survey carried out by the Dallas Federal Reserve are due to be released at 10:30 am ET. The business activity index based on the survey is expected to edge down to 15 in February from 15.3 in January.

Later in the week, the Commerce Department's durable goods orders report for January, the weekly jobless claims report and the Conference Board's consumer confidence index for February are on tap.

Traders may also focus on the Commerce Department's personal income and outlays report for January, the auto sales for February, the Federal Reserve's Beige Book and the FOMC's semiannual report are due out.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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