401

The US dollar dropped to 3-month low

On Wednesday, the greenback dared to sag to its weakest level against the major European currency since late October after rather a gloomy reading on American service-sector growth. To make things worse the Fed put interest-rate hike on hold.  

The euro managed to hit $1.1082, which is its most powerful level since late October, compared to $1.0925 on Tuesday in New York. The British pound grew to $1.4596, its highest level for three weeks, compared to $1.4403 on Tuesday.     

A standard measure of the evergreen buck’s strength against a basket of six major currencies, the ICE US Dollar index dropped 1.1% at 97.70. That was its weakest value since December 16. The index found itself on track because of its largest daily decrease since the beginning of the year.   

As for activity in American retail sector, including such industries as healthcare, banking and retail, it soared at the slowest tempo for two years, according to the Institute for Supply Management’s Index.    

To make things worse William Dudley, New York Fed President dropped a hint that a tighter financial situation could be a solid reason to delay the next interest-rate rise. A great number of investors expected the Fed to do this in a decade during its March gathering.      

Scroll to top