The US Dollar softened against the Pound and edged lower against the Euro after mortgage data out of the United States showed that the Federal government shutdown is beginning to negatively impact the world’s largest economy.
According to the Mortgage Bankers Association, its seasonally adjusted index of mortgage application activity rose by 0.3% in the week ending October 11th. The figure is a sharp decline on the previous week’s gain of 1.4%. The cause for the fall is being blamed on the ongoing federal government shutdown as economists worry that the ongoing impasse among US lawmakers is dragging upon the national economy.
“Purchase applications for government programs dropped by more than 7% over the week to their lowest-level since December 2007, and the government share of purchase applications dropped to its lowest level in almost three years,” Mike Fratantoni, MBA’s vice president of research and economics, said in a statement.
The Pound strengthened to reach session highs against the ‘Greenback’ due to data showing that the number of UK citizens out of work in the nation fell to a record low and the number of people filing for unemployment benefit dropped to its lowest level since 1997.
Against the Euro the US Dollar fell to a two-week low as investors speculate over whether a debt ceiling deal will be reached before the October 17th deadline.
“The Dollar broadly is on a weaker footing as what appeared yesterday to be some progress ahead of the deadline now seems much less likely,” said a currency strategist at HSBC Holdings Plc in an interview with Bloomberg. “The bond and stock markets seems a bit too complacent. I’m not sure whether that complacency will maintain.”
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6256
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7388
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0366
The US Dollar/ Australian Dollar Exchange Rate is currently in the region of: 1.0490
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1882
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.7520
The US Dollar/ South African Rand Exchange Rate is currently in the region of: 9.8932
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5983
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3535
(Correct as of 15:20 pm GMT)
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