Dollar gains as jobs, housing, manufacturing, spending data worry investors:The dollar rose against most other major currencies in midday trading Wednesday as weak reports on housing, employment and manufacturing added to worries about the economy.
The 15-nation euro fell to $1.2832 from $1.3022 late Tuesday, while the British pound dropped to $1.5232 from $1.5400. But the dollar dipped to 95.38 Japanese yen from 95.65 yen.
The Labor Department said new claims for jobless benefits fell to 529,000 last week from a 16-year high of 543,000 the previous week. The four-week average for initial claims, however, rose to 518,000, its highest point since January 1983.
Meanwhile, the Commerce Department said consumer spending fell by 1 percent in October. Spending by consumers makes up two-thirds of the country's economic activity, and the monthly decline was the biggest since 2001.
The government also released grim reports on housing and manufacturing. Sales of new homes plunged 5.3 percent in October to their lowest point in nearly 18 years, while the median price of a home fell to 2004 lows. Factory orders for durable goods dropped 6.2 percent in October, with heavy declines in auto and airplane demand.
Stocks started lower after three days of gains before recovering as President-elect Barack Obama named former Federal Reserve Chairman Paul Volcker as a senior advisor and hammered home his message that help is coming for the economy. By midday, the Dow Jones industrials were up about 80 points after falling as much as 167 earlier in the session.
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