The US Dollar index has strengthened after data showed that US durable goods rose by a higher-than-expected margin in April, raising optimism that the US manufacturing sector is set to recover strongly in the second half of the year.
According to the Washington based Commerce Department bookings for equipment meant to last at least three years increased by 3.3% last month after falling by 5.9% in March. Economists had been expecting an increase of just 1.5%.
Increasing activity in the auto and housing industries is expected to boost the nation’s manufacturing sector and assist in the US economy’s strong recovery.
Economists however are warning that any improvements will be slow to take hold due to government cutbacks and higher taxes on consumers are slowing exports and slowing demand.
“This report is consistent with the economy continuing to recover, but just at a moderate pace,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, and the second-best forecaster of capital goods orders over the past two years, according to data compiled by Bloomberg.
“We’re not getting much demand from the rest of the world, but we are getting growth domestically.”
Also supporting the Dollar was the release of the latest consumer spending data. The data showed that consumer spending rose in the first quarter o 2013 by its fastest pace in more than two years. Sales of cars showed a steady increase. Also showing signs of improvement were clothes, appliances and electrical goods sales.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6627
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7720
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0354
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0350
(Correct as of 14:30pm GMT)
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