Dollar mixed on construction data, Obama plan
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NEW YORK—The dollar rose against the euro and yen, but fell against the pound Monday as investors focused on President-elect Barack Obama's economic stimulus plan, while a government report showed that construction spending fell less than forecast.
The 16-nation euro fell to $1.3602 in late trading in New York, compared with $1.3854 late Friday. The currency, which was adopted by Slovakia on Jan. 1, had opened higher in early trading, climbing as far as $1.3963.
The British pound strengthened to $1.4723 from $1.4471 at the end of last week, even as analysts expect a rate cut by the Bank of England on Thursday from its current 2 percent.
Cutting interest rates can undermine a currency as investors seek higher returns elsewhere.
Meanwhile, the dollar rose to 93.21 Japanese yen from 92.17 yen in late trading Friday.
"The dollar started the first full trading week of 2009 significantly higher against most of its major trading partners, notably against the euro and the yen," said Bhav Dhanak of
Obama met with top U.S. lawmakers Monday to push for quick action on a broad economic stimulus package that congressional leaders are saying won't be ready until mid-February at the earliest.
Obama, a Democrat, takes office Jan. 20. He is pushing for a bill to cross his desk by the beginning of February.
The stimulus plan could total up to $800 billion, with up to $300 billion in tax cuts meant for both workers and businesses -- significantly higher than had been signaled earlier.
Markets also found encouragement Monday after the Commerce Department said construction spending dropped by 0.6 percent in November, half the 1.3 percent decline Wall Street expected. A 4.2 percent fall in housing construction was partially offset by a surprisingly strong 0.7 percent rise in nonresidential activity.
In other trading Monday afternoon, the dollar rose to 1.1084 Swiss francs from 1.0793 francs late Friday, but dropped to 1.1893 Canadian dollars from 1.2141.
