Dollar higher, yen slips again

THE US dollar has edged higher following last week's strong gains and the yen has slipped again after G7 finance chiefs reiterated over the weekend their pledge against competitive devaluations.

At ,2100 GMT on Monday (0700 AEST on Tuesday) the euro traded at $1.2975, compared to $1.2992 late Friday, holding in a narrow range during a day with little news to move trade.

The dollar picked up to 101.82 yen from 101.59, but pulled back from the 102-yen line in early trade, while the euro rose to 132.11 yen compared to 132.05 yen on Friday.

Christopher Vecchio, currency analyst at DailyFX, said the market needed to take a breather on Monday.

"Commentary from the G7 meeting was roundly supportive of Japan's policies, with the Japanese envoy declaring victory upon leaving London, gleefully noting that no G7 member was opposed to the country's aggressive and fiscal easing policies."

"If the yen continues to weaken at its current pace, the G7 is likely to change its tune. But for now, there's little exogenous pushback."

The British pound weakened, falling to $1.5298 from $1.5354, while the dollar pushed higher against the Swiss franc, to 0.9575 franc from 0.9560.

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Construction sector declines again

Australia's housing and apartment construction sector has seen sharp contractions in April. Source: AAP

AUSTRALIA'S construction sector shrank for the 35th consecutive month in April, with continued decline in home and apartment building.

The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (PCI), shows the sector contracted in April at its fastest rate since September 2012.

Australian Industry Group (Ai Group) director of public policy Peter Burn said the index showed sharp contractions in housing and apartment construction, while the engineering construction subsector also weakened.

He said the figures were a sign the Reserve Bank of Australia (RBA) needed to cut the cash rate, currently at three per cent.

"With current activity, new orders and employment all contracting and with inflation well-contained, a further cut in interest rates is clearly desirable," he said.

Housing Industry Association (HIA) chief economist Harley Dale said federal government assistance was also needed if the troubled sector was going to improve enough to offset some of the effects of the expected decline in mining investment.

He said the figures were a warning to the government not to cut spending or increase taxes substantially in its budget on May 14.

"Talk of tax hikes and indiscriminate funding cuts doesn't do anything to address the lack of traction the non-resource economy currently displays in filling the hole left by mining-related investment," he said.

The PCI shows activity in the construction sector fell 3.8 points to an index level of 35.2 in April.

An index reading below 50 indicates activity in the sector is shrinking and the lower the reading, the greater the rate of contraction.

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eBay raises commission fees again

eBay's commission is now nearly double what it was just two years ago. File image: AP Source: AP

THE dominant online auction site, eBay, will substantially increase its sales commission from May.

"Final value fees for successfully selling an item will increase to 9.9 per cent,'' eBay said in an email sent to registered users this morning.

The company raised the standard fee to 7.9 per cent only 12 months ago.

The increase should deliver eBay a revenue bonanza as lifting the commission rate from 7.9 per cent to 9.9 per cent is a jump of more than a quarter.

eBay's commission is now nearly double what it was just two years ago.

In 2011 the final value fee was reported to be just 5.25 per cent. However, at that time there were also insertion charges. Now the first 40 are free.

From May this year, eBay will also increase the maximum fee from $100 to $250.

News Limited requested comment from eBay. None has so far been forthcoming.

The new fee structure can be found here.

Will it stop you from selling on eBay? Tell us: john.rolfe@news.com.au

Follow this reporter on twitter: @costofliving; @public_defender
 

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