The U.S. dollar rose today as the reports about the increasing personal income, consumer spending and manufacturing signaled about the widening U.S. economic recovery; the greenback was also supported by the speculation that the Goldman Sachs Group Inc. won’t be sued for the fraud.
The personal income rose $36.0 billion (0.3 percent), while the consumer spending increased 0.6 percent. The manufacturing sector expanded in April, the growth continues for the ninth consecutive month and with the fastest pace since June 2004. Warren Buffett, who invested $5 billion in the Goldman Sachs in 2008, defended the bank, claiming that shouldnât be blamed for losses on mortgage bets.
The experts say that the investors may shun the euro in favor of the U.S. currency as the increasing corporate earnings and the signs of the overall healthy economic situation support the dollar’s strength, while the concern for the spreading budget deficit problem is still plaguing Europe, undermining the confidence in the euro.
EUR/USD traded at 1.3191 today as of 21:11 GMT after opening at 1.3329. USD/JPY traded near 94.54 up from the opening level of 93.94. GBP/USD traded at about 1.5237.
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