Forex News – Dollar falls after disappointing US home sales data

Important: This page is part of archived content and may be outdated.

The dollar dropped sharply against the yen after a disappointing U.S. home sales report.

Existing home sales  unexpectedly fell in February and the supply of properties on the market rose, underscoring the many hurdles for a housing market recovery.

The National Association of Realtors (NAR) said existing home sales slipped 0.9 percent to an annual rate of 4.59 million units last month.   Economists polled by Reuters had expected sales to rise to a 4.62 million-unit sales pace last month.

USDJPY dropped to 83.72 within 20 minutes of the data, from a pre-data level of 83.96.

EURUSD initially fell from 1.3225 after the data to 1.3211 then jumped to 1.3255.

However, January’s sales pace was revised up to 4.63 million units from the previously reported 4.57 million units.

About 33 percent of pending contracts were cancelled, the NAR said. Investors bought 23 percent of homes in last month, with first-time buyers accounting for about third of the transactions.