Euro up against a weaker dollar

Published: 17 Apr at 9 AM Tags: Euro, Dollar,

The dollar is close to its lowest level in a week against most other major currencies following disappointing economic data released by the US. The new figures make it less likely that the Federal Reserve will choose to increase interest rates in June this year as initially expected.

On Thursday the dollar index fell as low as 97.282 and is currently down 1.8 per cent for the week at 97.596. A slew of poorer than expected economic data has been putting pressure on the greenback in recent weeks. Analysts will now be concentrating on today’s US consumer inflation data.

Also happening later today is a Group of 20 finance ministers meeting, although analysts have said it shouldn’t have too much of an impact of global currencies. This week the US also published figures that showed housing starts in March were weaker than originally forecast.

The weaker dollar is good news for other currencies. The euro gained 0.1 per cent to trade at $1.0775. Despite concerns in the eurozone over Greece, the single currency has managed to gain 1.6 per cent this week.

The euro is also up 0.2 per cent against the yen at 128.19 yen. The dollar has managed to remain steady against its Japanese rival at 118.98 yen.