During New York session on Wednesday, the U.S. dollar slipped against most major currencies. The dollar fell to 5-day lows against the euro, the franc and the pound. However, it extended its previous session’s choppy trading versus the yen.
Wholesale inventories showed another modest increase in the month of April, according to a report released by the Commerce Department today, although the increase in inventories came in slightly below economist estimates.
The report showed that wholesale inventories increased by 0.4 percent in April following an upwardly revised 0.7 percent increase in March. With the increase, wholesale inventories rose for the fourth consecutive month.
The U.S. dollar continued its previous session’s slide against the Swiss currency during Wednesday’ s New York session. At 10:20 am ET, the dollar traded at a 5-day low of 1.1434 against the franc, compared to yesterday’s close of 1.1525. If the dollar drops further, it may target around the 1.127 level. Presently, the dollar is trading at 1.1442 against the franc.
The U.S. dollar slipped to a 5-day low of 1.4576 against the pound at 9:30 am ET. At present, the dollar is trading at 1.4568 against the pound, compared to yesterday’s close of 1.4473. On the downside, the dollar may target around the 1.475 level.
In economic news, the U.K. trade deficit was broadly unchanged in April, defying expectations for a decline, as the value of exports and imports hurt by the volcanic eruption in Iceland.
The deficit on trade in goods was GBP 7.3 billion in April, broadly unchanged from March, data issued by the Office for National Statistics showed today. April’s shortfall stood above the expected GBP 7 billion deficit. The statistical office revised the visible trade deficit for March from GBP 7.5 billion.
The dollar weakened against the common currency of Europe as well. At 10:25 am ET, the dollar fell to a 5-day low of 1.2048 against the euro with 1.233 as the next downside target level. The dollar, which closed yesterday’s trading at 1.1972 against the euro, is now worth 1.2034.
The dollar-yen pair continued to exhibit choppy trading during Wednesday’s New York deals. As of now, the pair is trading at 91.43, down from yesterday’s close of 91.52.