Dollar gains on economic outlook jitters

By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Investors flocked to the dollar Tuesday as global markets tumbled and fears about the health of European banks compounded lingering economic woes.

What prices are doing: The dollar rose 0.06% versus the euro to $1.2186, and it gained 0.04% to $1.5062 against the British pound.

dollar.png

Against the Japanese yen, the greenback lost 0.06% to ¥88.54.

The dollar was mixed against major currencies Monday after world leaders pledged to drastically cut deficits over the next few years.

What's moving the market: With the European Central Bank's year-long €442 billion lending program set to expire Thursday, investors worried that the global economic recovery could be derailed if private-sector banks are unable to pay back the central bank.

Fears that they won't be able to repay the money, as well as uneasiness about cutting off funding for banks that have become dependent on the liquidity, shook global markets Tuesday and sent investors to safe havens such as the U.S. currency and government-backed Treasurys.

Investors were also digesting economic data released Tuesday, looking for cues about the health of the U.S. economy.

The Case-Shiller index of home prices in 20 cities rose 3.8% on a year-over-year basis in April after climbing 2.3% in March, beating the 3.4% rise economists surveyed by Briefing.com had expected.

But the positive housing data was overshadowed by a report showing a slump in consumer confidence.

The Conference Board's consumer confidence index fell to 52.9 from 62.7 in May, the lowest level since March and a much bigger drop than the expected decline to 62.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.87%3.78%
15 yr fixed3.01%2.98%
5/1 ARM3.09%3.06%
30 yr refi3.95%3.85%
15 yr refi3.10%3.05%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,024.06 183.54 1.03%
Nasdaq 5,005.39 63.97 1.29%
S&P 500 2,108.29 22.78 1.09%
Treasuries 2.12 0.07 3.47%
Data as of 5:03pm ET
Company Price Change % Change
Bank of America Corp... 16.11 0.18 1.13%
Apple Inc 128.95 3.80 3.04%
Alcoa Inc 14.15 0.73 5.44%
Microsoft Corp 48.66 0.02 0.03%
Chesapeake Energy Co... 16.54 0.77 4.88%
Data as of May 1

Sections

A new accelerator, ICONYC Labs, is finding hot new Israeli startups to participate in its six-month program. More

A new accelerator, ICONYC Labs, is finding hot new Israeli startups to participate in its six-month program. More

Most victims of workplace violence are women. Immigrants and Latinos are most likely to suffer fatal accidents at work. More