U.S. Dollar Struggles

The dollar weakened versus most major peers as signs that U.S. growth was hampered by a partial government shutdown fueled speculation the Federal Reserve will push back the timing of monetary stimulus reductions.

The greenback approached a two-year low against the euro before a report today that may show continuing jobless claims in the U.S. rose. Demand for Europe’s shared currency was supported before data that may indicate faster expansion in the region’s manufacturing and service industries. Australia’s currency strengthened after a private report signaled manufacturing growth in China.

“U.S. data isn’t likely to swing the picture back to talk of tapering,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “It’s more likely we will see the U.S. dollar continuing to struggle.”

Bloomberg

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