Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.85%3.83%
15 yr fixed2.97%2.96%
5/1 ARM3.13%3.11%
30 yr refi3.96%3.95%
15 yr refi3.07%3.06%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,516.64 165.26 1.01%
Nasdaq 4,791.52 41.54 0.87%
S&P 500 1,970.59 21.73 1.12%
Treasuries 2.18 -0.01 -0.46%
Data as of 11:16am ET
Company Price Change % Change
Bank of America Corp... 16.16 0.31 1.96%
Apple Inc 112.02 -0.33 -0.29%
Freeport-McMoRan Inc... 10.20 0.30 3.03%
Netflix Inc 102.52 -2.92 -2.77%
Intel Corp 29.35 0.75 2.62%
Data as of 11:01am ET

Sections

China's slowing economy has already put a dent in Europe's recovery and could force the region's central bank to pump even more money into the system. More

I tried out personality detection software startup Crystal and spoke with others who've used the service. Here's what it's like. More

BB-8 is the new rolling droid in the upcoming 'Star Wars: The Force Awakens.' Startup Sphero made a mini version for you to take home. More

A new survey finds that those who consider themselves contractors, freelancers, and other 'free agent' workers expressed higher satisfaction with their work and career development than full-time traditional employees. More