Official data out of the USA showed that the number of building permits issued in February increased to their highest level since June 2008, while housing start ups also rose by a more-than-expected amount.
The positive data has strengthened the US Dollar further against the Euro and a number of its peers as optimism continue to rise that the world’s largest economy is on track for a steady but firm recovery.
According to the US Commerce department, the number of building permits issued in February rose by 4.6% to a seasonally adjusted 0.946 million, the figure was above expectations for a 2.3% increase to 0.925 million units.
US housing starts rose by 0.8% last month to a seasonally adjusted 0.917 million, compared to expectations for an increase to 0.915 million.
Against the Indian Rupee the Dollar gained sharply due to a disappointing Indian Central Bank policy statement and as a key government ally withdrew their support. The withdrawal of support for Prime Minister Manmohan Singh’s economic reforms now puts them in jeopardy.
“Political stability is the new concern now. The market was caught short following the rate cut decision, and hence the USD/INR spiked up,” said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.
The next event to affect the ‘Greenback’ will be tomorrow’s outcome of the Federal Reserve’s policy meeting. Investors will be keen to see whether the Fed will give any hints that it will seek to alter its asset purchase programme.
Current US Dollar Exchange Rates
The US Dollar to Euro (USD/EUR) exchange rate is trading at 0.7736
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trading at 0.661
The US Dollar to Canadian Dollar (USD/CAD) exchange rate is trading at 1.0258
The US Dollar to Australian Dollar (USD/AUD) exchange rate is trading at 0.9637
The US Dollar to New Zealand Dollar (USD/NZD) exchange rate is trading at 1.2108
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 95.0664
The USD to Indian Rupee (USD/INR) exchange rate is trading at 54.3758
These exchange rates were correct as of 15:50 pm GMT
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