The US dollar fell against the Japanese yen today following poor macroeconomic data from the United States. The greenback was basically flat against the euro and the Great Britain pound.
The University of Michigan released its preliminary estimate of the US consumer sentiment index. The indicator dropped from 98.1 in January to 93.6 this month even though analysts predicted no change. Additionally, both import and export prices fell last month, though the drop was not as big as forecasters predicted.
Today’s data reminded market participants that the US economy is not without its share of problems even though it looks better than other major economies. This led to speculations that the Federal Reserve may wait longer before raising interest rates. Such talks are detrimental for the US currency which finds it difficult to extend its massive rally since the beginning of the current year.
EUR/USD traded at 1.1388 as of 19:20 GMT today after opening at 1.1401. GBP/USD was at 1.5393, close to the opening level of 1.5383. Meanwhile, USD/JPY dropped from 119.09 to 118.74, falling for the second day.
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