Dollar Eases Against Major Counterparts

(RTTNews) - The U.S. dollar lost ground against its major counterparts on Wednesday, weighed down by data showing sharp drop in U.S. business activity in the month of August.

S&P Global released data showing a slowdown in the pace of growth in service sector activity in the month of August as well as a contraction in manufacturing activity during the month.

Meanwhile, the Commerce Department released a separate report showing new home sales rebounded by much more than expected in the month of July.

The Commerce Department said new home sales spiked by 4.4% to an annual rate of 714,000 in July after tumbling by 2.8% to a revised rate of 684,000 in June.

Economists had expected new home sales to jump by 1.2% to a rate of 705,000 from the 697,000 originally reported for the previous month.

With the much bigger than expected increase, new home sales reached their highest annual rate since hitting 773,000 in February 2022.

The focus is now on the Jackson Hole Symposium, where global central bankers are scheduled to speak. Federal Reserve Chair Jerome Powell will speak on Friday.

The dollar index, which rose to 103.98 in early New York session, fell to 103.30 around early afternoon before recovering to 103.40.

Against the Euro, the dollar weakened to 1.0864, easing from 1.0803. The Pound Sterling regained some lost ground against the dollar, but still remains weak at $1.2719, down from Tuesday's close of $1.2732.

Against the Japanese currency, the dollar weakened to 144.88 yen, down by about 0.7%. Against the Aussie, the dollar is down at 0.6480, easing from 0.6422.

The Swiss franc is up against the dollar at CHF 0.8782, while the Loonie has firmed to 1.3528 against the dollar.