The U.S. dollar rose slightly against the major currencies in Asian trade yesterday as investors awaited a speech by the U.S. Federal Reserve chief while monitoring the lingering Greek debt crisis.
The euro fell to US$1.3471 in Tokyo afternoon trade from US$1.3487 in New York late Monday, but firmed to 124.81 yen from 124.58 yen. The U.S. dollar edged up to 92.61 yen from 92.42 yen in New York.
Lael Brainard won Senate confirmation on Tuesday as the Treasury Department’s top financial diplomat, giving her a key role in U.S. efforts to persuade China to adopt a more flexible currency.
The Senate gave its blessing on a 78-19 vote, a day after Brainard, who served in the Clinton White House, cleared a Republican procedural hurdle.
Nineteen Senate Republicans joined 57 Democrats and two independents in confirming Brainard as Treasury Department’s under secretary for international affairs. Her nomination was stalled for more than a year because of objections by some Republicans.
US stocks drifted higher on Monday amid uncertainty over fraud charges against top Wall Street bank Goldman Sachs.
The Dow Jones Industrial Average rose 25.02 points (0.23 per cent) to 11,043.68, recovering from a more than 100 points’ plunge on Friday when the Securities and Exchange Commission (SEC) announced civil fraud charges on Goldman.
Fannie Mae’s economists see signs of a strengthening economy but say the housing market still faces headwinds.
In its April Economic Outlook, Fannie Mae says excess inventory and foreclosure sales are hindering the housing market. New home sales are at record lows and will be slow to recover until inventory of existing homes and foreclosure overhang are worked off, Fannie Mae says.
It notes some positive signs for housing, particularly rising existing home sales, including pending sales and purchase applications.
On the broader economy, Fannie Mae forecasts 2010 economic growth of 3.1 percent.
President Barack Obama will push for his plan to tighten Wall Street regulations in New York on Thursday, the White House said on Monday, as he attempts to overcome solid Republican opposition.
The battle over a financial regulatory overhaul represented a new election-year fault line in Washington after the bruising healthcare debate, and poses a new challenge for Obama as he seeks to gain passage of one of his key domestic priorities.
Democrats have seized on a fraud suit against Goldman Sachs as an example of why Wall Street needs to be cleaned up after a financial crisis that triggered the worst U.S. recession since the Great Depression.
The index of U.S. leading indicators rose in March by the most in 10 months, a sign the economy will keep growing into the second half of the year.
The 1.4 percent increase in the New York-based Conference Board’s measure of the outlook for three to six months was more than anticipated and followed a revised 0.4 percent gain in February.
Manufacturers are ratcheting up production and factory workers are putting in longer hours as companies rebuild inventories and ship more goods overseas. Further improvement in the job market will help sustain the economy’s recovery from the worst recession since the 1930s.