The dollar saw little movement versus its major counterparts Wednesday after another disappointing reading on the US housing situation. The greenback barely budged after mid-morning despite concerns about the outlook for global stocks amid more problems in the banking arena. The greenback was uncertain versus the sterling Wednesday, hovering just above the 2.05 mark after seeing major swings in the previous two sessions. The dollar saw a dramatic advance on Monday, only to give back its gains the next day. The dollar bounced back and forth near yesterday's closing level against the euro, giving back early gains before levelling off in late morning activity. the dollar closed at 1.4250, with traders showing little response to the housing data. The greenback drifted slightly lower versus the yen Wednesday morning and saw little movement in afternoon dealing. The dollar eased to 113.80 from Tuesday's peak near 115. The yen gained on other majors this morning as traders moved away from riskier currencies after stocks plunged on Wall Street. Another major drop in US home sales and a dismal quarter from Merill Lynch (MER) threatened investor confidence and raised the spectre of recession for the US economy. Traders considered data showed that US existing home sales fell 8 percent in September, to its lowest point 6 years. The magnitude of the housing declines suggest that a recession may be on the horizon. Traders will now pay even closer attention to employment figures to get a better handle on the possibility of the US economy slowing down to recessionary levels.
October 24, 2007 4:41 PM