Investing.com - The dollar was trading close to two-year lows against the euro on Wednesday as expectations that the Federal Reserve will maintain the current pace of its stimulus program into next year weighed.
During U.S. morning trade, the euro was almost unchanged near 23-month highs against the dollar, with EUR/USD dipping 0.01% to 1.3780.
The dollar remained broadly weaker amid expectations that the Fed will delay plans to start tapering stimulus, after Tuesday’s disappointing U.S. nonfarm payrolls report.
The U.S. economy added 148,000 jobs in September the Labor Department said, well below expectations for an increase of 180,000, indicating that jobs growth had slowed even before the start of the recent 16-day U.S. government shutdown.
The euro had briefly edged lower earlier after the European Central Bank announced details of new year-long bank stress tests. The news sparked concerns over a revival of the crisis in the euro zone.
The dollar was also sharply lower against the yen, with USD/JPY dropping 0.87% to 97.28.
Elsewhere, the dollar regained ground against the pound, with GBP/USD down 0.42% to 1.6169.
Sterling remained lower after Wednesday’s minutes of the Bank of England’s October meeting said the U.K. unemployment rate appears to be falling at a faster than expected rate as the "robust" recovery gains traction.
The bank also estimated that growth in the second half of the year would remain around 0.7% a quarter or a little higher, stronger than expected at the time of the August inflation report.
The dollar fell to 23-month lows against the traditional safe haven Swiss franc, with USD/CHF down 0.27% to 0.8923.
The greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD advancing 0.97% to 1.0388, AUD/USD dropping 0.86% to 0.9623 and NZD/USD tumbling 1.5% to 0.8387.
The Canadian dollar hit session lows after the Bank of Canada dropped language referring to the need for future rate increases from its monetary policy statement and revised down its growth forecast for this year.
The BoC left interest rates on hold at 1% in a widely expected decision.
Sentiment on the Aussie and the kiw was hit by concerns that China’s central bank would tighten monetary policy to help control inflation in the world’s second-largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.06% to 79.35.
During U.S. morning trade, the euro was almost unchanged near 23-month highs against the dollar, with EUR/USD dipping 0.01% to 1.3780.
The dollar remained broadly weaker amid expectations that the Fed will delay plans to start tapering stimulus, after Tuesday’s disappointing U.S. nonfarm payrolls report.
The U.S. economy added 148,000 jobs in September the Labor Department said, well below expectations for an increase of 180,000, indicating that jobs growth had slowed even before the start of the recent 16-day U.S. government shutdown.
The euro had briefly edged lower earlier after the European Central Bank announced details of new year-long bank stress tests. The news sparked concerns over a revival of the crisis in the euro zone.
The dollar was also sharply lower against the yen, with USD/JPY dropping 0.87% to 97.28.
Elsewhere, the dollar regained ground against the pound, with GBP/USD down 0.42% to 1.6169.
Sterling remained lower after Wednesday’s minutes of the Bank of England’s October meeting said the U.K. unemployment rate appears to be falling at a faster than expected rate as the "robust" recovery gains traction.
The bank also estimated that growth in the second half of the year would remain around 0.7% a quarter or a little higher, stronger than expected at the time of the August inflation report.
The dollar fell to 23-month lows against the traditional safe haven Swiss franc, with USD/CHF down 0.27% to 0.8923.
The greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD advancing 0.97% to 1.0388, AUD/USD dropping 0.86% to 0.9623 and NZD/USD tumbling 1.5% to 0.8387.
The Canadian dollar hit session lows after the Bank of Canada dropped language referring to the need for future rate increases from its monetary policy statement and revised down its growth forecast for this year.
The BoC left interest rates on hold at 1% in a widely expected decision.
Sentiment on the Aussie and the kiw was hit by concerns that China’s central bank would tighten monetary policy to help control inflation in the world’s second-largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.06% to 79.35.