Dollar falls on weak Q2 GDP data410 views
The dollar fell sharply against the euro and a basket of currencies on Friday following the release of quarterly US GDP figures that were well under expectations.
The US Commerce Department had announced earlier in the day that GDP had risen by an anemic 1.2 percent in the second quarter. Analysts had expected results closer to 2.6 percent.
Towards 2100 GMT, the euro stood at $1.1177 versus $1.1076 the day before after hitting $1.1197 at 1500 GMT, a level not seen in a month.
The dollar also fell against the yen, trading at 102.07 yen, down from 105.32 the day before. The Bank of Japan concluded its policy meeting on Friday, leaving interest rates untouched but increasing its purchases of exchange-traded funds.
The British pound likewise gained against the dollar, buying $1.3223, up from $1.3166.
“The greenback is down as soft US data supported the case for an ongoing delay to resumption in Fed tightening, while today’s Bank of Japan policy easing also underwhelmed,” Nick Bennenbroek, head of currency strategy at Wells Fargo, wrote in a research note.
“Over the longer term we expect the Fed will eventually resume its rate hike cycle, and anticipate gains in the US dollar against most G10 and emerging currencies.”
2100 GMT Friday Thursday
EUR/USD 1.1177 1.1076
EUR/JPY 114.09 116.65
EUR/CHF 1.0830 1.0866
EUR/GBP 0.8452 0.8413
USD/JPY 102.07 105.32
USD/CHF 0.9689 0.9810
GBP/USD 1.3223 1.3166
News Source The Times of India