Dollar Tumbled after S&P Financial Downgrade
by Yan Xu
6/2/2008 4:00:00 PM
The dollar tumbled after rating agency Standard & Poor's downgraded various US financial sector firms. The euro hit session high at 1.5588 versus the dollar following the news.
US data released earlier in the session were slightly above the expectations, but had little impact on the market. Manufacturing ISM rose from 48.6 to 49.6 in May, versus the estimate of 49.0. Construction spending slipped 0.4% in April after a 1.1% contraction in the previous month.
Te sterling lost more than 2 cents against the dollar after a UK mortgage lender announcement raised concern on financial sector problems. Britain's biggest lender of buy-to-let mortgages, Bradford & Bingley, revealed rising bad debts and lower lending had reduced its profit in four months to April by half. Also, an official report showed UK new home loan approvals hit a record low in April. ( More.. )
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