The dollar remained weak today due to a series of disappointing US economic data that signalled the American economy is likely to grow slowly in the near term. This raised speculation that the Federal Reserve will maintain monetary stimulus.
The dollar fell against most major counterparts, including the euro after data showed manufacturing in the Philadelphia region grew at a less than forecast rate, while unemployment claims were higher than expected.
Meanwhile, the Conference Board’s leading economic index declined 0.10 percent in March following three months of gains, missing expectations for a rise.
The weak data weighed on the ICE dollar index, which is a gauge of the USD against a basket of six other major currencies. The index declined to 82.537 in today’s session compared to 82.649 late on Wednesday.
The euro edged up marginally against the broadly weaker dollar, recovering some losses from Wednesday’s sharp drop. The single currency remains vulnerable due to expectations of an interest-rate cut from the European Central Bank. EURUSD reached as high as $1.3095 today, up from $1.3000 on Wednesday.
USDJPY traded a tight range, between 97.91 and 98.50. Focus is on the G20 meeting currently underway, to see if there will be any reference to Japan’s recent monetary policy measures that have had a big impact on the yen, and weakening it drastically. Japan has been criticized for undertaking a currency war.
The dollar remained weak today due to a series of disappointing US economic data that signalled the American economy is likely to grow slowly in the near term. This raised speculation that the Federal Reserve will maintain monetary stimulus.
The dollar fell against most major counterparts, including the euro after data showed manufacturing in the Philadelphia region grew at a less than forecast rate, while unemployment claims were higher than expected.
Meanwhile, the Conference Board’s leading economic index declined 0.10 percent in March following three months of gains, missing expectations for a rise.
The weak data weighed on the ICE dollar index, which is a gauge of the USD against a basket of six other major currencies. The index declined to 82.537 in today’s session compared to 82.649 late on Wednesday.
The euro edged up marginally against the broadly weaker dollar, recovering some losses from Wednesday’s sharp drop. The single currency remains vulnerable due to expectations of an interest-rate cut from the European Central Bank. EURUSD reached as high as $1.3095 today, up from $1.3000 on Wednesday.
USDJPY traded a tight range, between 97.91 and 98.50. Focus is on the G20 meeting currently underway, to see if there will be any reference to Japan’s recent monetary policy measures that have had a big impact on the yen, and weakening it drastically. Japan has been criticized for undertaking a currency war.
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