* Dollar falls as Bernanke reappointment boosts stocks
* Case-Shiller report shows improving U.S. housing sector
* U.S. consumer confidence rises in August
(Updates prices, adds U.S. data)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 25 The dollar fell on Tuesday as
generally upbeat U.S. economic data and Ben Bernanke's
reappointment as Federal Reserve chairman encouraged investors
to take on riskier trades.
President Barack Obama on Tuesday renominated Bernanke to a
second term as Fed chairman as the U.S. economy attempts to
come out of the worst recession since the Great Depression.
<For related news click [ID:nWBT013076]>. That contributed to a
rally in stocks, benefiting currencies perceived to be higher
risk such as the euro.
In addition, reports showing a rise in U.S. consumer
confidence and an increase in prices of U.S. single-family
homes for a second consecutive month in June also boosted risk
sentiment. For the housing report, see [ID:nNYS005335]. For
consumer confidence, click on [ID:nN25207057].
"These numbers are definitely reassuring, though I'm more
focused on the housing data. Still, the consumer confidence is
like gravy today," said Melvin Harris, market strategist, at
Advanced Currency Markets in New York.
"We're not in full-blown recovery mode yet but we are
seeing more normalized markets. Consumer numbers are important
numbers -- they are an indicator of what people are willing to
spend and that matters for GDP growth."
The yen was little changed against the U.S. dollar, erasing
nearly all its gains earlier in the session.
The yen and dollar tend to fall when risk appetite
"Risk appetite has been the story all year and it will be
for some time," said Jacob Oubina, currency strategist at
Forex.com in Bedminster, New Jersey.
Meanwhile, the Bernanke story has been out for many hours,
with the news citing a senior Administration official earlier.
Currency markets, however, were slow to react as investors
mainly took their cue from equities.
Analysts said the delayed reaction was quite normal in thin
summer trading conditions as financial markets for direction.
"Clearly, Mr. Obama's decision (to reappoint Bernanke) has
been motivated by a realization that U.S. and global financial
markets desperately need a sense of stability at a time when
the banking system still remains vulnerable to further
writedowns and credit contractions," said Boris Schlossberg,
director of FX research at GFT in New York.
In mid-morning New York session, the euro EUR= rose 0.2
percent on the day to $1.4324, clawing back some losses after
slipping to the day's low of $1.4254 according to Reuters data.
It rose as high as $1.4361.
The euro showed little reaction to figures confirming
German's economy grew by 0.3 percent in the second quarter and
exited a recession. [ID:nLO664090]
The ICE Futures' dollar index .DXY, a measure of the
dollar's value against six major currencies, was down 0.2
percent at 78.149.
The greenback traded at 94.38 JPY= yen, 0.1 percent lower
from late on Monday.
(Additional reporting by Steven C. Johnson; Editing by W