Forex

US Dollar At 22 Month Low Amid Slow National Recovery

US Dollar At 22 Month Low Amid Slow National Recovery

On Thursday, July 23 2020, the dollar floated around its 22-month low level amid the pessimistic signs of US economic recovery from the crisis due to high upturn of corona cases in the nation again. US dollar index that measures the United State currency’s strength against six major currencies went down to 94.72, a 0.22% fall.

Although America is in the path of bouncing back in the 3rd quarter of 2020, the signs of declining customer spending at the retail stores and increasing unemployment suggest that the nation’s growth is stuck at a point.

On Thursday, around 1.4 million people applied for unemployment insurance for the week ending on July 18. A week prior to this, around 109,000 fewer people applied for the same, and the number is more than the expert’s predictions of 1.3 million too, according to the US Labor Department.

The failure of a V shape expected recovery has also disappointed the investors and many argue that the world economy would bounce back in the form of bumps or W-shape. Fewer customers at the retail shops are not a huge concern instead of high unemployment and low industrial production led by the pandemic is an issue, according to Paul Ashworth, a US economist.

Euro is also gaining sharply against the US dollar continuously for the last five weeks. On Thursday, the EURO rose around 0.28% and closed at $1.116 against the greenback.

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