The U.S. dollar declined against the euro after the concern about Greece’s budget deficit has eased, but in the same time the U.S. currency gained versus the Japanese yen and may be further bolstered by the signs of the increasing consumer demand, signaling about the recovering economy and the rising consumer purchasing capability.
The main reason for the increasing consumer buying is the improving job market boosting the confidence of the consumers and spurring their desire to spend money. The household purchases surged at about the 3 percent annual pace in the first quarter of this year after report that 162,000 jobs were added by the employers. Yet the Federal Reserve may hold the interest rates low through the third quarter because of the retreating inflation and the persisting concern about the unemployment rate.
USD/JPY jumped today to 93.73 as of 9:22 GMT after opening at 93.36. EUR/USD traded at 1.3396 up from the opening level of 1.3360
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