Dollar drops 1% against euro, sterling

The US dollar's declines deepened this afternoon after US economic data met with expectations, failing to convince the currency…

The US dollar's declines deepened this afternoon after US economic data met with expectations, failing to convince the currency market that aggressive US interest rate hikes are guaranteed in coming months.

The dollar fell overnight as rising oil prices are seen slowing the US economy, since the US is a net importer of oil. The dollar fell 1 per cent at $1.2120 against the euro and was down 1.3 per cent at $1.8127 against sterling.

The Conference Board's US consumer confidence index inched up to 93.2 in May from a revised 93.0 in April.

The slight increase was in line with expectations. Also reported, sales of existing homes unexpectedly rose 2.5 per cent to seasonally adjusted annual rate of 6.64 million in April, the second highest pace on record, from 6.48 million in March, according to the National Association of Realtors. Economists were expecting a dip to 6.41 million.