The dollar is turning in a mixed performance Tuesday, gaining ground against the Euro and the pound sterling, but losing ground against the Japanese Yen. Continued uncertainty surrounding Greece has investors flocking to safe havens.
With the value of exports falling by much more than the value of imports, the Commerce Department released a report on Tuesday showing that the U.S. trade deficit widened in the month of May. The report said the trade deficit widened to $41.9 billion in May from a revised $40.7 billion in April. Economists had expected the deficit to widen to $42.7 billion.
The wider deficit primarily reflected the decrease in the value of exports, which slid 0.8 percent to $188.6 billion in May from $190.1 billion in April.
European finance ministers are meeting today as part of a last-ditch effort to reach a new bailout agreement, after Greek voters rejected reform proposals in Sunday’s referendum.
The dollar climbed to a 1-month high of $1.0915 against the Euro Tuesday, but has since eased back to around $1.0965.
Germany’s industrial production remained unchanged in May from the prior month, Destatis reported Tuesday. Production was forecast to rise 0.1 percent after expanding 0.6 percent in April, which was revised down from 0.9 percent.
The French trade deficit increased in May due to a fall in exports amid increasing imports, the customs office reported Tuesday. The trade deficit widened to EUR 4.02 billion in May from EUR 3.3 billion in April. It was larger the expected shortfall of EUR 3.6 billion.
The buck rose to over a 3-week high of $1.5412 against the pound sterling, but has since slipped back to around $1.5450.
U.K industrial output expanded unexpectedly in May on strong oil and gas production, figures from the Office for National Statistics showed Tuesday. Industrial production rose 0.4 percent month-over-month in May, defying economists’ expectations for a 0.2 percent fall. It was the fourth consecutive monthly gain.
The greenback slipped to a low of Y122.005 against the Japanese Yen Tuesday, but has since bounced back to around Y122.350.
Japan’s official reserve assets decreased in June from the previous month, a report published by the Ministry of Finance revealed Tuesday. Total reserve assets declined by $2.820 billion month-on-month to $1242.9 billion in June.
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