USD falls on negative economic data

Story link: USD falls on negative economic data

The US dollar had a rough week as negative data finally stopped its rally. It was hit by a series of negative news this week, including data showing that capital inflows in April did not cover the deficit for the month, the second time in a row that this has happened. Also, both consumer and producer inflation data was below expectations.

The Australian dollar was up 1.9 percent in relation to the US dollar this week to $0.7764, while the New Zealand dollar gained 1.6 percent for the week to $0.7167 against the US dollar. In addition, the Brazilian real was up 3.4 percent to R$2.388 in relation to the US dollar while sterling gained 0.8 percent for the week to $1.8260 against the US dollar.

The decline in the dollar helped the euro to finally gain back some ground after having lost 6.7 percent against the dollar since early May. The euro advanced by 1.1 percent this week to $1.2239 in relation to the US dollar, gaining most on Friday after comments from European banking and finance officials that an interest rate hike in the eurozone would not aid the currency. The shared currency also was up 1.3 percent this week in relation to the yen, to ¥133.27 and advanced 0.3 percent for the week to £0.6703 against sterling.