Dollar loses stength again as outlook looks weak

Story link: Dollar loses stength again as outlook looks weak

The US dollar weakened yet again on Thursday as investors waited for US trade figures that are scheduled to be released on Friday.

Analysts seem to feel that the dollar’s failure to gain strength even in the face of recent relatively strong economic data points to structural factors such as the deficits, are affecting its value.

Analysts also warn that strong growth does not necessarily mean a stronger dollar. Added to indications that growth may slow in the fourth quarter, analysts seem not to expect a strengthening soon.

The US dollar lost 0.4 percent to $1.2432 in relation to the euro and fell 0.5 percent to SFr1.2487 against the Swiss franc, both two-month lows. The greenback reached six-month lows against both the yen and sterling as it lost 0.7 percent to the yen, to ¥109.90 and fell 0.6 percent in relation to sterling, to $1.8067.

Additionally, the US dollar fell to C$1.2014 against the Canadian dollar, a loss of 0.7 percent and a five-month low.

The dollar was in a better position in relation to the Brazilian real, however, as the real lost 2.7 percent to R$2.3404 to the dollar.

The Australian and New Zealand dollars both gained on the US dollar as employment grew in those nations. With 12,700 new jobs in July after an expected decline, the Australian dollar gained 1.2 percent to $0.7741 in relation to the US dollar. The New Zealand dollar gained 1.4 percent to $0.7050 against the greenback.