Greenback struggles at six-week minimum
On Wednesday, the major American currency struggled close to 6-week minimums against a basket of key counterparts because of expectations that the Fed is about to lift interest rates later rather than sooner.
The US dollar’s softness followed weak performance by Wall Street overnight, with indexes facing their worst trading day in roughly a month in the wake of controversial economic news and dropping oil prices.
American consumer spending surged but the markets focused more on Tuesday's inflation numbers. Financial experts say that this along with poor business investment as well as the second quarter's anemic economic growth rate, could give the Fed the reason to keep interest rates at current minimum levels.
The greenback was ready for another correction after it went through rather a bullish phase on expectations that the US major bank would lift its rates. However, it’s unlikely that the evergreen buck will be dipping much further from here. The American economy might be sluggish, though it is not stuck in a downtrend.