The US dollar fell this morning (August 29th) versus the euro on the back of speculation of cuts in consumer spending.
The dollar’s slump puts an end to the series of rallies it has experienced this month, which have seen the greenback gain ground on the pound and euro.
The currency’s decline is on the back of speculation that a US government report is set to show that consumer spending has tailed off and a rise in oil prices is pending due to the hurricane in the Gulf of Mexico, according to Bloomberg.
Ian Stannard, currency strategist for BNP Paribas, told Bloomberg: "We’ve seen the dollar rally running out of steam this week as oil prices have started to firm up again, hurting the currency.
"It’s not surprising that the dollar has weakened given the extent of its recent gains. We see some upside potential for the euro."
By about 09:30 BST this morning, the dollar was down to $1.4753 per euro in London trading, when it had been at $1.4706 yesterday in New York trading.
The euro was down to 160.10 yen, while the dollar slid to 108.53 yen.
Leave Your Comments