Dollar Falls as US Economy Slumps

The dollar is heading for a weekly loss today, weighed down by signs of a slowing US economy. The euro received support from the European Central Bank’s hawkish rhetoric after its interest rate cut, which pushed the single currency to its highest level in a month and a half, rising 0.05% in recent trading to $1.1449.

The pound rose just 0.1% to $1.3583, after hitting its highest level in more than three years in the previous session, and is on track for a 0.9% gain this week. The yen fell 0.1% to 143.74 against the dollar.

The dollar index, which measures the greenback’s performance against a basket of currencies, was little changed at 98.72 after hitting a six-week low on Thursday, and is on track for a weekly loss of 0.7%. The Australian dollar rose (0.06)% to (0.6512) US dollars, and is expected to achieve weekly gains of (1.1)%, while the New Zealand dollar rose (0.17)% to (0.6048) dollars, on its way to weekly gains of (1.1)%.