NEW YORK (Reuters) – The U.S. dollar extended gains against major currencies on Wednesday after data showed the world’s largest economy slipped in the first quarter, worse than market expectations, but better than the dire predictions touted by some of the biggest U.S. banks.
Gross domestic product (GDP) fell 0.3% in the quarter, a Commerce Department report showed in its first estimate, compared with expectations for a 0.3% rise, according to economists polled by Reuters.
Goldman Sachs, however, had forecast a 0.8% contraction in U.S. GDP, while J.P. Morgan predicted a 1.75% fall.
Following the data, the dollar extended gains versus the yen to trade 0.3% higher to 142.755 yen, while the euro slid 0.1% to $1.1375.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)
