The U.S. dollar weakened versus the Japanese yen to the lowest level since the beginning of this year on the signs of the slower economic growth; the bad news from the U.S. fueled concerns for the global economic recovery, causing the euro and the Great Britain pound to drop against the U.S. currency.
The Standard & Poorâs 500 Index dropped 2 percent. The University of Michigan preliminary index of the consumer sentiment fell much more than anticipated, to 66.5 in July from 76.0 in June. The yen also gained after the greenback after the yield spreads between Japan and the U.S. notes shrank. The U.S. currency fell against the euro to $1.30 for the first time since May 10th before it rebounded.
The economists say that these days the interest rates play very significant role in the markets. The poor economic data from the U.S. makes it unlikely for the Federal Reserve to raise the interest rates.
USD/JPY traded at 86.68 as of 17:25 GMT today after opening at 87.38. EUR/USD dropped to 1.2924 from its opening rate of 1.2946. GBP/USD fell to about 1.5295 from its opening price of 1.5459.
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