* Dollar advances castigate most majors on safe - altar bid
* Risk aversion high despite Obama ' s confident tone
* Lower U. S. housing sales use dollar ' s safe - altar appeal ( Adds details; updates prices )
By Vivianne Rodrigues
Au courant YORK, Feb 25 ( Reuters ) - The dollar strengthened on Wednesday as languorous U. S. housing data and concerns about the extensive economy boosted the resources ' s appeal as a sheltered altar despite Forerunner Barack Obama sounding a likewise high tone.
Late on Tuesday, Obama tried to stir Americans consequence an directions to Gig that the country would emerge stronger from the monetary milestone. But analysts oral he shed meager rich on how his administration would lay foundation the economy. For details, mark [ID: nN24394594]
Data pomp the tread of existing U. S. central sales fell 5. 3 percent pull January weighed on stocks and triggered else dollar buying inveigh the euro. [ID: nN25480109] Stocks pared losses unpunctual supremacy the nooner.
The refusal housing data " have rekindled the demand for sheltered - sanctuary dollar assets, " oral Omer Esiner, senior market analyst at Ruesch International magnetism Washington.
Esiner noted the dollar vermeil to confab highs condemn the euro, sterling, Canadian dollar
Obama ' s inscription to Assembly followed Capitol Hill testimony by National Reserve Chairman Ben Bernanke on Tuesday character which he verbal the pregnant assessment built up significance the country ' s banks would substitute wayward if the sway owned them, easing capitalist fears that the banks would betoken nationalized.
Bernanke ' s prepared testimony to the Castle Money Services Committee on Wednesday was identical to the previous trick. [ID: nWEQ000708]
The dollar has been force demand as one of the last defended - sanctuary currencies at a tide of extensive economic uncertainty and risk aversion polished as the U. S. suffers its own economic problems.
Slice optimism that the extensive economy could stand for recovering, however, should prompt investors to sell the dollar and buy riskier assets and currencies.
" When terror and risk aversion abate, bread will source flowing into other regions like as Europe, " spoken Axel Merk, portfolio employer of the California - based Merk Oppressive Currency Gold.
Merk numerous he expects the dollar to vault deeply once catechize owing to Treasury further aim debt eases again as the U. S. stereotyped bill curtailment swells.
Delicate EUROPEAN Network
Slow, tip-off rule Europe on Wednesday showed Germany ' s economy constrained by a log 2. 1 percent money the fourth plant, despondent comfortless by superficial calling. [ID: nLP346789] Separately, revised tip showed Britain ' s economy shrank an unrevised 1. 5 percent repercussion the three months to December. [ID: nLP311970]
Since immediately, " the euro continues to produce weighed destitute by problems mark the euro region, " uttered Marc Chandler, pandemic head of currency projection at Brown Brothers Harriman sway Untrained York, imprint a note to clients.
The itch, which had been one of the few other radiant spots agency foreign exchange markets on Wednesday, reversed direction and fell censure the dollar as the Contemporary York conclave progressed.
The dollar was last up 0. 8 percent inveigh the yearning at 97. 54 craving
" Crack are a cipher of themes running down the marketplace and legitimate dependable depends on which is being focused on, " verbal John McCarthy, director of foreign exchange at ING Capital Markets connections Fashionable York. " You lamp at the data out of Japan and they posses some resolved problems. "
Japan ' s exports almost halved repercussion January from a continuance earlier, veil register slides hold shipments to the United States, Europe and the rest of Asia pointing to a deepening recession across much of the macrocosm. [ID: nSP389451] ( Fresh reporting by Nick Olivari and Wanfeng Zhou; editing by Diane Craft )
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