• By The Financial District

U.S. Dollar Sinks To Its Newest Low In A Month

The dollar fell to a one-month low on Thursday, a day after the US Federal Reserve said the job market still had "some ground to cover" before it would be time to ease monetary stimulus, taking the steam out of a month-long rally by the greenback, Saqib Ahmed and John McCrank reported for Reuters.

Photo Insert: Is the U.S. dollar's reign over the euro over?

Reuters said the dollar index, which measures the greenback against a basket of six other currencies, was down 0.383% at 91.905, its lowest since June 29. The euro gained 0.35% against the dollar, to 1.1885.


"The dollar's reign over the euro appears over as the Fed appears nowhere near tapering as the economy slowly makes its way to achieving substantial progress in the labor market," said Edward Moya, senior market analyst for the Americas at OANDA.


The index, which is still up 1.6% since the Fed's June meeting after a hawkish shift from the US central bank, found little support from US gross domestic product numbers released on Thursday.


Data showed that while the US economy grew solidly in the second quarter, boosted by massive government aid, growth fell short of economists' expectations. GDP increased at a 6.5% annualized rate last quarter, the Commerce Department said on Thursday, well below the 8.5% rate economists polled by Reuters had forecast.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

"With the dollar already under pressure today as the risk environment stabilizes and markets embrace the dovish rhetoric from Fed Chair (Jerome) Powell yesterday, the near-2-percentage-point miss in Q2 GDP did little to relieve the greenback," said Simon Harvey, senior FX market analyst at Monex Europe.



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