U.S. Dollar Continues to Fall Amid Pessimism on Economic Growth

The dollar weakened the most in almost three months as signs U.S. economic growth is flagging damped speculation the Federal Reserve might raise interest rates sooner than anticipated.

New Zealand’s dollar climbed to within a half-cent of a record after the nation’s central bank increased interest rates this month for a third time. The pound headed for its longest run of quarterly gains versus the dollar since 2007 as U.K. growth boosted the case for a jump in interest rates. The U.S. economy added 215,000 jobs in June, about the same as in May, a report next week is forecast to show.

“Growth for the year is set to be uninspiring,” said Paul Robson, a senior foreign-exchange strategist at Royal Bank of Scotland Group Plc in London. “The dollar’s just staying relatively weak until the data change.”  The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, fell 0.5 percent to 1,005.04 in New York, the third straight weekly decline and the biggest since April 11.

Bloomberg

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