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Dollar extends losses as U.S. data disappoints

Published 10/30/2015, 11:39 AM
© Reuters.  Dollar pushes broadly lower vs. rivals on weak U.S. data
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Investing.com - The dollar extended lossed against the other major currencies on Friday, as the release of downbeat U.S. economic reports fuelled concerns over the strength of the economy.

The dollar was lower against the yen, with USD/JPY down 0.58% at 120.42.

The University of Michigan said its consumer sentiment index fell to 90.0 this month from 92.1 in September, compared to expectations for a rise to 92.5.

In addition, the U.S. Bureau of Economic Analysis said that personal spending rose 0.1% last month, disappointing expectations for a 0.2% rise and after a 0.4% increase in August.

The data added to concerns over the strength of the economy after the Commerce Department said on Thursday that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

Also Friday, data showed that the Chicago purchasing managers' index rose to 56.2 in October from 48.7 the previous month, beating expectations for an increase to 49.0.

Another report showed that U.S. employment costs rose 0.6% in September, in line with expectations.

The greenback had strengthened broadly after Wednesday’s Federal Reserve statement said that officials might make a decision to raise interest rates at their December meeting.

Meanwhile, the yen remained supported after the Bank of Japan refrained from adding additional monetary easing measures at its monthly policy meeting on Friday.

EUR/USD advanced 0.84% to trade at 1.1070.

Eurostat, the statistical body of the European Union, reported on Friday that the annual rate of inflation in the euro zone was flat in September, compared to expectations for a 0.1% uptick.

Euro zone inflation fell 0.1% in August. It was the first time in six months that the region saw declining inflation.

Data also showed that the single currency bloc's unemployment rate slipped to 10.8% last month from a revised rate of 10.9% in August. Analysts had expected the unemployment rate to remain at 11.0% in September.

Elsewhere, the dollar pushed lower against the pound and the Swiss franc, with GBP/USD up 0.73% at 1.5421 and with USD/CHF sliding 0.40% to 0.9853.

The Australian and New Zealand dollars extended earlier gains, with AUD/USD up 0.66% at 0.7120 and with NZD/USD rallying 1.02% to 0.6762.

Meanwhile, USD/CAD declined 0.35% to trade at 1.3126 after Statistics Canada reported that the country's GDP rose 0.1% in August, in line with expectations and down from a 0.3% growth rate the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.71% at 96.67, pulling away from Wednesday's two-and-a-half month highs of 97.89.

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