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Dollar Exhibits Weakness Again

Dollar Exhibits Weakness Again

The U.S. dollar extended its recent slide on Friday amid the possibility of more interest rate cuts by the Federal Reserve in the near run to support the economy.

The dollar index eased to a low of 97.25 in late afternoon trades and was last seen at 97.27, down 0.35% from previous close of 97.61.

The index shed about 0.9% in the week.

The dollar was down nearly 0.4% against the euro, at 1.1164, with the latter gaining in strength thanks to the progress made by the U.K. and the EU on the Brexit front.

Against Pound Sterling, the dollar was down almost 0.5% at 1.2950 ahead of tomorrow’s vote on a Brexit deal the U.K. and the EU negotiators drafted on Thursday.

The Japanese Yen strengthened to 108.41 from previous close of 108.64 a dollar.

Against the loonie and Swiss franc, the dollar was down 0.13% and 0.35% at 1.3120 and 0.9845, respectively.

The Aussie-Dollar was up 0.45% at 1.3120.

It remains to be seen whether the draft Brexit deal will get the required majority from the U.K. lawmakers on Saturday.

Already, the Democratic Unionist Party, which is a key ally of Johnson’s government, confirmed in a statement Thursday that it is unable to back the proposals in the Commons as they are not in the best interests of Northern Ireland.

In U.S. economic news, the Conference Board released a report on Friday showing an unexpected drop in its reading on leading U.S. economic indicators in the month of September.

The Conference Board said its leading economic index edged down by 0.1% in September after dipping by a revised 0.2% in August.

Economists had expected the index to rise by 0.2% compared to the unchanged reading originally reported for the previous month.

Federal Reserve Vice Chairman Richard Clarida on Friday said the economy is facing “evident” risks, while inflation remains muted.

In a speech in Washington, Clarida stressed interest-rate policy was not on a preset course and policy makers would make decisions meeting-by-meeting. Officials would assess the risks and will act as appropriate.

The material has been provided by InstaForex Company – www.instaforex.com