The US Dollar has strengthened against the Pound and extended its gains against the Euro and other major currencies after data showed that the US economy expanded at a faster than expected pace in the second quarter of the year.
According to data released by the Commerce Department, US GDP grew at an annual rate of 2.5% beating economist forecasts for a 2.2% rise and far better than the previous reading of 1.7%. Many economists are now expecting the economy to accelerate further over the course of the second half of the year as government imposed austerity measures and tax hikes begin to have less impact on national output.
“The economy is doing fine,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, who projected a 2.5 percent gain in GDP. “It is going to weather the sequestration. Growth will accelerate in the second half.”
Jobless claims data also supported the currency as the number of claims at the end of the week of the 24th of August dropped by 6,000 to 331,000, down from the 337,000 recorded in the previous week.
“The market will take (the data as a sign that) tapering would be more likely next month,” said Scott Brown, an economist at Raymond James in St. Petersburg, Florida.
The Dollar lost some support throughout the session as demand for the currency as a safe-haven softened as the prospect of imminent military action against Syria receded after the UK and France said that they favour waiting to hear the results of the United Nations into alleged use of chemical weapons.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6448
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7541
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1173
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.1521
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0503
(Correct as of 15:00 pm GMT)
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