Dollar remains broadly lower after U.S. housing sector data

Investing.com – The dollar remained broadly lower against the other majors currencies on Friday, after the release of disappointing housing sector data, but the greenback remained close to 14-year highs following the Federal Reserve’s decision to raise interest rates this week.

EUR/USD rose 0.29% to 1.0443, off the previous session’s 14-year low of 1.0363.

The U.S. Commerce Department said that housing starts tumbled 18.7% to hit 1.090 million units last month from October’s total of 1.340 million units, an upward revision from the initial 1.323 million.

Analysts had expected November’s reading to fall to only 1.230 million units.

Meanwhile, U.S. building permits dropped 4.7% to 1.201 million units last month from 1.260 million in October. Economists had forecast the units to fall to 1.240 million units in November.

The greenback had rallied after the Fed concluded its policy meeting on Wednesday by raising interest rates by 25 basis points and projected three more rate hikes for 2017.

 

Elsewhere, GBP/USD added 0.19% to 1.2435, after falling to a three-week trough of 1.2372 on Thursday.

The pound remained mildy supported after the Bank of England’s decision to keep interest rates at a record low of 0.25% and the bank’s bond-buying program target at £435 billion.

USD/JPY held steady at 118.21, while USD/CHF was almost unchanged at 1.0300.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.37% at 0.7331 and with NZD/USD dropped 0.51% at 0.7001.

Meanwhile, USD/CAD gained 0.29% to trade at 1.3374.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.17% at 102.97, still close to the previous session’s 14-year high of 103.56.