Dollar on course for worst month in decade as epidemic hobbles U.S. economy
The dollar slipped to two-year lows on Friday and is on track to post its biggest monthly decline in 10 years, as investors worried that a recovery in the U.S. economy would be hampered by the country’s struggle to stem the coronavirus epidemic.
Confidence in the U.S. currency was undermined further after U.S. President Donald Trump raised the possibility of delaying the nation’s November presidential election.
The dollar index fell to 92.597, a low last seen in May 2018, and is on course to post its steepest monthly fall since September 2010. It has fallen 4.9% so far this month.
The U.S. Labor Department data showed initial claims for unemployment benefits increased 12,000 to a seasonally adjusted 1.434 million in the week ending July 25, a sign that recovery in the employment market is stalling.
The euro hit a two-year high of $1.1905 and last traded at $1.1883, having gained 5.8% so far in July, the biggest gain in a decade.
Against the yen, the dollar hit a 4 1/2-month low of 104.195 yen and last stood at 104.36, having lost 3.3% this month.
Likewise the British pound stood at $1.3122 after hitting a 4 1/2-month high of $1.3143.
Reference: CNBC
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