U.S. Dollar at One Month Low

The dollar fell to a one-month low after economic reports cast doubt on the strength of U.S. recovery, supporting the Federal Reserve’s commitment to record-low interest rates.

The U.S. currency slipped to the lowest in more than two weeks versus the euro as reports showed durable-goods orders in May unexpectedly fell and the economy contracted more than estimated in the first quarter. Indonesia’s rupiah slid to the lowest level since February as the central bank said it will allow weakness in the currency to help exports. Poland’s zloty strengthened amid a parliamentary vote of confidence in the government.

“We saw some U.S. selling pretty much across the board,” said Ken Wills, a Toronto-based currency strategist at the broker and payment provider USForex Inc. “It looked like there could be more, but the market quickly digested the data, realized it’s far behind us and it’s not expecting any change from the Fed based on this data.”

Bloomberg

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