Dollar slips ahead of economic reports

Published: 5 Jun at 9 AM Tags: Euro, Dollar,

The US dollar hit its lowest level in a month against a number of major currencies after disappointing economic data made it unlikely that the Federal Reserve will bring to an end its easy money programme. Analysts are now focusing on job figures due to be published at the end of the week.

Since hitting a high of 103.74 yen last month the dollar has lost 4 per cent against the Japanese currency falling to 99.67 yen. The greenback also fell against the battered Australian dollar.

The Aussie gained 2 per cent to hit $0.9792. The recovery of the Aussie from a trough of $0.9528 at the end of last month could see the Reserve Bank of Australia push the cash rate down further in order to encourage stronger economic recovery.

The euro has also edged up slightly against its US rival to hit $1.3084, an increase of 0.1 per cent. All eyes are now on tomorrow’s meeting at the European Central Bank to see if President Mario Draghi will give any hints about a proposed rate cut.

Shares in Japan have slipped although investors are likely to remain cautious until Prime Minister Shinzo Abe outlines his strategy for economic growth. Job figures in the US are important because the Fed has said it will not scale back on its policy of monetary easing until there areal signs of sustained growth.