Daily currency report

The pound weakened against the dollar following the housing problems which are troubling the English market. Elsewhere, the European Central Bank is expected to keep interest rates on hold in order to fight against the always growing inflation.

British Pound (GBP)

The pound weakened against the dollar after an industry survey showed house prices fell for an eighth month in May and will probably drop further. The UK currency slipped for a second day versus its US counterpart after London-based Hometrack Ltd said the average cost of a residential property in England and Wales declined by the most in the year since November 2005.

US Dollar (USD)

The dollar traded near a one-month low against the euro on speculation US reports tomorrow will show that the slump in home prices deepened and consumers were the most pessimistic in at least 15 years. The US currency fell versus the Canadian dollar and held near a 25-year low against the Australian dollar after oil and gold prices gained, improving the outlook for commodity exporters.

Euro (EUR)

Consumer prices in the euro region rose 3.5 per cent in May, faster than the 3.3 per cent gain in the previous month. The euro may be supported by speculation the 15 countries that share the currency are strong enough to withstand a slowdown in the US, allowing the European Central Bank to keep interest rates on hold to fight inflation.

Japanese Yen (JPY)

The yen climbed to as high as 103.06 versus the US currency, from 104.06 at the close of trading in Tokyo last week. A stronger yen decreases the value of Japanese exporters' dollar-denominated sales when converted into the local currency.