U.S. Dollar Falls as Housing Data Disappoints

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U.S. Dollar Falls as Housing Data Disappoints

The dollar was recently down about 0.7% against the Japanese yen. Photo: Mark Lennihan/Associated Press

The U.S. dollar fell as fresh data stoked worries about economic growth in the U.S. and abroad.

The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, fell 0.2% to 91.09 on Thursday.

New-home sales in the U.S. declined in April, recording the largest month-on-month drop since December of last year and signaling that the housing market is on weaker footing during the critical spring selling season. Purchases of newly built single-family homes fell 6.9% in April. Economists polled by The Wall Street Journal expected a 2.7% drop.

Meanwhile, a measure of activity in the eurozone’s manufacturing and services sectors stagnated in May.

Investors also bought Treasurys and sold U.S. stocks as anxiety about growth and trade tensions sent investors seeking the relative safety of government bonds. The 10-year Treasury yield fell to at 2.296%, the lowest level since February 2018. Yields fall as bond prices rise, and lower Treasury yields can make the U.S. dollar less attractive to income-seeking investors around the world.

Write to Gunjan Banerji at [email protected]