U.S. Dollar Falls to Seven-Week Low

The dollar slumped to its lowest level against a basket of major peers in seven weeks as reports this week highlighted speculation the U.S. economic recovery hasn’t fully gained traction.

The U.S. currency dropped for a third day versus the yen on bets the Federal Reserve will keep borrowing costs at almost zero after gross domestic product shrank 2.9 percent in the first quarter. Sweden’s krona weakened to a 2 1/2-year low against the euro as retail sales data supported forecasts for rate cuts when the Riksbank meets next week. The South Korean won advanced to the strongest since August 2008.

“The dollar lost a bit of data support this week,” said Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA. “Markets understandably feel a little bit nervous about the economic momentum after the first-quarter GDP revisions.”

Bloomberg

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