US dollar slumps as rate hike expectation dims

New York, Aug 22 (IANS) The US dollar dropped against most major currencies as investors lowered their expectation for an interest rate hike as early as September, following the release of weak economic data from China.

The Caixin Flash China General Manufacturing Purchasing Managers’ Index retreated to 47.1 in August from 47.8 in July, the lowest level since March 2009.

Analysts on Friday said the soft Chinese data added to the sliding commodity prices, raised uncertainties on the timing of the Federal Reserve raising interest rates, Xinhua reported.

They said that higher rates would increase borrowing costs for companies and consumers, causing possible damage to the global economic growth.

The US dollar was further under pressure as the country’s economic data came out negative. Financial data firm Markit reported on Friday that US manufacturers indicated a renewed loss of momentum during August.

The dollar index, which measures the greenback against six major peers, was down 1.04 percent at 94.981 in late trading.

In late New York trading, the euro rose to $1.1359 from $1.1193 in the previous session and the British pound climbed to $1.5703 from $1.5672 in the previous session. The Australian dollar inched down to 0.7329 dollar from 0.7337 dollar.

The US dollar bought 122.06 Japanese yen, lower than 123.48 yen of the previous session, dived to 0.9486 Swiss franc from 0.9619 Swiss franc and surged to 1.3170 Canadian dollars from 1.3097 Canadian dollars.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here