Alexa
  • Directory of Taiwan

Dollar falls against most major currencies

Dollar falls against most major currencies

The dollar fell against most major currencies Wednesday after a government report showed that U.S. economic growth is slowing.The 12-nation euro edged up to $1.2829 in afternoon New York trading from $1.2822 late Tuesday in New York. The British pound rose to $1.9035 from $1.8979.
The dollar slipped against the Japanese currency, weakening to 117.13 yen from 116.63 late Tuesday.
The U.S. on Wednesday reported another sign of slowing growth, with the economy growing at a 2.9 percent annual rate in the spring _ better than first estimated but nowhere near the brisk pace logged in the winter.
The Commerce Department reported that gross domestic product in the April-to-June quarter increased slightly more than the 2.5 percent pace first reported a month ago.
The markets are looking ahead to the European Central Bank's policy meeting on Thursday and the Labor Department's employment report on Friday. The ECB is widely expected to raise rates again before the end of this year, but not at its meeting on Thursday.
The dollar started to lose ground Tuesday after the minutes of the Federal Reserve's most recent policy meeting disappointed investors who had expected a more hawkish stance.
The minutes of the Aug. 8 meeting _ at which the Fed kept interest rates unchanged for the first time in more than two years _ indicated that central bank policy-makers generally expect core inflation to decline gradually, suggesting less need for higher rates to curb price rises.
Higher rates boost a currency by making some classes of security more attractive to international investors.
In other New York trading, the dollar bought 1.2284 Swiss francs, up from 1.2283 late Tuesday, and 1.1095 Canadian dollars, up from 1.1076.