Dollar Extends Slide After Weak Data Reinforces Fed Views |
| Wall Street Journal - Apr 28, 2011 |
The beleaguered dollar extended its broad decline Thursday after U.S. economic data pointed to a dismal employment picture and slowing growth, bearing out the Federal Reserve's reluctance to tighten monetary policy anytime soon.
The U.S. Dollar Index was still lower for the day, but off the depths it reached overnight. The euro has come off its high to trade nearly flat against the dollar.
U.S. jobless claims unexpectedly jumped last week and the government reported the pace of economic growth in the country slowed sharply in the fourth quarter, further adding to the negative dollar sentiment permeating the market.
"There's no fundamental justification to be long dollar right now," said Paresh Upadhyaya, director of G10 FX Strategy at Bank of America-Merrill Lynch in New York.
Traders have been selling the dollar in droves in recent weeks, sending the greenback to multi-year lows against most other major currencies. That sell-off continued Wednesday when Federal Reserve Chairman Ben Bernanke indicated the central bank is far from tightening monetary policy. Thursday's economic data provides further justification for the Fed's current policy, analysts said.
Read Full Article from Wall Street Journal
- Posted: 2011-04-28 12:48:47
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