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Friday, August 24, 2007

Dollar Falls for Third Day Before Report on U.S. Home Sales

The dollar fell for a third day against the euro before a government report that's forecast to show sales of new homes in the U.S. weakened in July to the lowest in seven years.

The U.S. currency was also set for a weekly decline after the chief executive officer of the biggest U.S. mortgage lender said yesterday the economy is heading for recession and Goldman Sachs Group Inc. cut its forecast for the dollar. The yen dropped this week as global shares rebounded, prompting investors to borrow the currency to buy higher-yielding assets.

``Weak U.S. home sales data could again spark concerns over the U.S. mortgage market,'' said Carsten Fritsch, a currency strategist at Commerzbank AG in Frankfurt. U.S. data ``won't help the dollar to regain its ground.''

Read more at Bloomberg.com

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