The Dollar Index (DXY) fell before U.S. data today forecast to show consumer spending stagnated last month, boosting bets the Federal Reserve will renew its commitment to its bond-buying program at a meeting this week.
A government report showed on April 26 the U.S. economy expanded less than forecast in the first quarter, helping Treasury yields extend their monthly decline toward the steepest since May. The yen held a gain versus the currencies of Australia and New Zealand after a Chinese report showed growth in industrial companies slowed last month.
“The U.S. dollar will remain heavy, particularly as U.S. bond yields stay low,” said Joseph Capurso, a Sydney-based foreign-exchange strategist at Commonwealth Bank of Australia. (CBA) “The Fed meeting this week is not going to make any changes to policy or their statement.”
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