Worries about U.S. Economy sees Dollar at 8-1/2 Month Low

The dollar fell to eight-and-a-half-month lows against the euro and a currency basket on Friday on expectations the Federal Reserve will delay scaling back its monetary stimulus following this month’s political battles over the U.S. budget.

Volume was thin as investors braced for a deluge of U.S. economic data next week now that the U.S. government was open following a two-week shutdown. The September nonfarm payrolls report is due on Tuesday.

Analysts said concerns about the negative impact of the shutdown on the U.S. economy and the likelihood of the Fed leaving its bond-buying program intact until well into next year would weigh on the dollar. That should give the euro the potential to rise toward $1.40.

Reuters

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