* Lower U.S. Q3 GDP lifts yen vs dollar
* U.S. consumer confidence higher than expected
* Higher-yielding currencies such as Aussie dollar fall
(Updates prices, adds comment, changes byline)
By Wanfeng Zhou
NEW YORK, Nov 24 (Reuters) - The dollar fell to a six-week
low against the yen on Tuesday after a mixed bag of U.S. data
kept worries about an economic recovery alive, enhancing the
safe-haven appeal of the Japanese currency.
The greenback, however, held steady against the euro as
declines in the U.S. stock market dented risk appetite and
investors were reluctant to place big bets before the
Thanksgiving holiday on Thursday.
The U.S. economy grew more slowly than first thought in the
third quarter, the Commerce Department said. In another report
from the Conference Board, a private research group, the
consumer confidence index edged higher, but still pointed to
weak sentiment about the labor market. For more, see
[].
Kathy Lien, director of research at GFT Forex in New York,
said the mixed economic reports this morning have "instilled a
negative tone across financial markets."
But overall, "the markets are very hesitant to take the
dollar to any fresh lows, particularly against the euro and the
other key currencies," she added.
In afternoon trading, the dollar fell 0.5 percent to 88.48
yen, after hitting a session low at 88.36 <JPY=>, the lowest in
about six weeks, according to Reuters data.
The euro rose 0.1 percent to $1.4975 <EUR=>, in choppy
trading, but fell 0.5 percent to 132.49 yen. <EURJPY=R>
In its second estimate of third-quarter gross domestic
product, the Commerce Department said on Tuesday that the
economy expanded at an annual rate of 2.8 percent, rather than
the 3.5 percent pace it estimated last month.
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For a graphic on the impact of U.S. real GDP on the dollar,
click on
http://link.reuters.com/wem43g
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"This (GDP) number is slightly negative for risk appetite
because of the downgrade in the personal consumption number,"
said Jacob Oubina, senior currency strategist at Forex.com in
Bedminster, New Jersey.
Separately, the Conference Board's index of consumer
attitudes increased slightly to to 49.5 in November from 48.7
in October, while the Standard & Poor's/Case-Shiller index of
home prices in 20 metropolitan areas rose 0.3 percent in
September. See [].
The dollar showed little reaction to the minutes from the
Federal Reserve's November meeting.
Fed officials are increasingly confident in a durable
recovery for the U.S. economy, even though they do not see
employment picking up soon. See [].
The diminished appetite for risk also pressured
higher-yielding currencies. The Australian dollar fell 0.5
percent to US$0.9191 <AUD=>, while the New Zealand dollar slid
1.1 percent to US$0.7247 <NZD=>.
(Additional reporting by Gertrude Chavez-Dreyfuss;
Editing by Jan Paschal)
((wanfeng.zhou@thomsonreuters.com; +1 646 223 6304;
Reuters Messaging: wanfeng.zhou.reuters.com@reuters.net ))
