US Dollar Remains Lower in Currency Trading
US dollar is lower today, falling as warnings about the slow economic recovery in the United States remain intact. The US dollar doesn’t look as attractive as it did a couple of weeks ago, and disappointing economic data in the United States is only confirming that view.
US economic data is showing that recovery continues at a rather slow pace. Last week, initial jobless claims rose to 380,000, once again underscoring the fact that the labor market remains relatively weak in the United States. Additionally March core PPI only rose 0.3%, indicating that the US economic recovery remains slow.
Janet Yellen, the vice chair of the Federal Reserve, warned that interest rates will remain low for quite some time, since employment gains and other economic growth has been so modest. This statement has dashed the hopes of some, who had hoped that interest rates would rise sooner than expected.
Some of this speculation was what made the US dollar so attractive at the beginning of April. The idea of solid US economic growth, as opposed to a slowing eurozone economy, boosted demand for the greenback. Now, though, with Fed officials cautioning traders and investors, it looks as though the US dollar is likely to remain weak.
At 13:26 GMT EUR/USD is higher at 1.3157, up from the open at 1.3110. GBP/USD is up to 1.5951 from the open at 1.5907. USD/JPY is a little bit higher at 80.8900, up from the open at 80.8605.
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Earlier News About the US Dollar:
- US Dollar Heads Higher on Safe Haven Demand (2012-04-10)
- US Dollar Falls as Traders Still Expect QE (2012-04-09)
- Weekly Summary: Dollar's Rally Unfazed by Prospect of QE (2012-04-07)
- Dollar Harmed by Worse-Than-Expected Non-Farm Payrolls (2012-04-06)
- US Dollar Index Rises Today (2012-04-05)