US dollar finishes flat as pressure from economic data weighs in

Dollar index

The US dollar ended just near the flat line on Thursday, although its major rivals suffered a sorry loss, as the greenback cannot escape the pressure brought by disappointing economic figures.

The US dollar index, which gauges the performance of currency against its six rivals, finished flat to settle at 92.83, following a 15-month low settlement in the previous trading day.

Despite the mediocre performance on Tuesday, its major counterparts were not able to gain strength against the US dollar.

The British pound dropped 0.7% and last traded at 1.3255 per greenback, down from 1.3267 recorded in the previous session as UK’s services activity reportedly bounced last month.

The euro also depreciated at 1.19 against the dollar while versus the sterling, it shed 0.7% to end at 1.106 from 1.115, the lowest level of the currency against the pound since November last year.

The drop both in the euro and pound came in as the latest move by the Bank of England was considered dovish by investors. The central bank has decided to leave its interest rates steady at a record low of 0.25% from a 6-2 vote from its officials, a decision that was widely expected by financial markets.

Meanwhile in US, political uncertainties continued to hurt markets as reports about the ongoing investigation on Russia’s meddling with the country last elections sent more pressure to the forex and stock markets.


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