Yen, greenback both lower on interest rate concerns

Story link: Yen, greenback both lower on interest rate concerns

The US dollar was weaker on Monday as continued speculation that the Federal Reserve will cut interest rates next week.

Even though some Fed officials made remarks that seemed to indicate that the rate cut is not a done deal, the greenback dropped 0.1 percent to $2.0310 versus sterling and was also down 0.1 percent to SFr1.1860 in relation to the Swiss franc, while it fell 0.2 percent to $1.3795, less than a cent above its record low against the euro.

The Japanese yen also lost ground after new data showed that the gross domestic product there was down 0.3 percent in the second quarter of the year, cutting the possibility that the Bank of Japan will hike interest rates for the time being.

While the yen traded even in relation to the US dollar at ¥113.40, it dropped 0.2 percent to ¥156.40 versus the euro and was 0.3 percent lower to ¥78.50 against the New Zealand dollar.