U.S. Dollar Lower after Weak U.S. Spending Data

The dollar was poised to end the week with a whimper, dropping to a more than one-month low against the yen on Friday after downbeat U.S. spending data gave investors no reason to hope for higher U.S. rates anytime soon.

The New Zealand dollar, meanwhile, hovered at its highest in nearly three years as investors sought out higher-yielding currencies.

The latest U.S. consumer spending data released on Thursday fell short of expectations, and came close on the heels of this week’s steep downward revision to first-quarter growth.  The revision prompted some analysts to cut their forecasts for U.S. growth, and reinforced a view that the U.S. Federal Reserve should be in no hurry to tighten policy.

Reuters

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