* U.S. GDP, durable goods data weaker than expected
* Geopolitical concerns underpin the yen
* Pound edges higher against dollar on weak U.S. data
(Updates prices, adds comments, changes byline, dateline,
By Sam Forgione
NEW YORK, June 25 The U.S. dollar slid to a
one-month low against a basket of major currencies on Wednesday
after weak U.S. gross domestic product and durable goods orders
data signalled the likelihood of a continued dovish stance from
the Federal Reserve.
The Commerce Department said U.S. gross domestic product
fell at a 2.9 percent annual rate in the first quarter, instead
of the 1.0 percent pace it had reported last month, to record
its worst performance in five years.
In a second report, the department said orders for
long-lasting U.S. manufactured goods fell 1.0 percent last
month, marking the first decline in three months. Economists
polled by Reuters had forecast orders being flat.
"I would call it a shock given what was expected," said
Nawaz Ali, currency analyst at Western Union Business Solutions
in London, on the U.S. GDP revision. "Today's data is a warning
that (the Fed) may have to still print money for longer," he
Many expect the Fed to end its massive bond-buying program
in October. The Fed announced plans to reduce its monthly
purchases to $35 billion in July at the end of its last policy
meeting. Traders are also watching data closely for signs of
when the U.S. central bank will raise interest rates.
The U.S. dollar index, which measures the dollar
against a basket of six major currencies, was last down 0.22
percent at 80.153. The index earlier hit 80.091, its lowest in
over a month.
The euro was last up 0.25 percent against the dollar
to trade at $1.3639. The currency hit a more than two-week high
against the dollar of $1.36515 earlier in the session.
The dollar was last down 0.25 percent against the yen
at 101.72 yen after having fallen to a near two-week low of
101.62. The dollar was also last down 0.25 percent against the
Swiss franc to trade at 0.8915 franc.
Ali of Western Union said traders sought the yen as a safe
haven on escalating tensions in Iraq stemming from a Sunni
insurgent onslaught. The British pound also edged 0.05 percent
higher against the dollar at $1.6993 after Tuesday's
"The pound's rebound off the weak U.S. data offset about
half its drop off the Carney comments," said Steven Englander,
global head of G10 FX strategy at CitiFX in New York. The pound
fell on Tuesday after surprisingly less hawkish comments from
Bank of England Governor Mark Carney.
Englander also said a drop in U.S. government bond yields
hurt the dollar. The benchmark 10-year U.S. Treasury note
was last up 13/32 in prices to yield 2.54 percent.
(Reporting by Sam Forgione; Additional reporting by Anirban Nag
in London; Editing by James Dalgleish)