The US dollar was on the defensive side at the beginning of the week Monday, as more disappointing US economic data reignited speculations the Federal Reserve won’t increase interest rates any time soon.
On Friday, the US business investment spending plans dropped for a seventh consecutive month in March, implying the economy was struggling to bounce back.
The greenback closed at $1.0868 per euro from Friday’s $1.0900. Against the Japanese yen, the currency was at ¥118.91 from ¥120.10.
The US dollar ended the week on presumably fragile footing. Investors are asking if the stable set of weak US data “turns the dollar’s bull case on its head,” said Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman.
Since December 2008, the US central bank has retained overnight rates close to zero, and a series of uninspiring figures on retail sales, employment, and housing starts implied the Fed would retain the rates for at least many more months.
The material has been provided by InstaForex Company – www.instaforex.com