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Forex - Dollar at 7-week lows amid doubts over 2015 Fed rate hike

Published 15/10/2015, 06:09 pm
© Reuters.  Dollar slumps as prospects for 2015 Fed rate hike fade
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Investing.com - The dollar was at seven-week lows against the other major currencies on Thursday amid growing doubts over whether the Federal Reserve will hike interest rates before the years end after the latest batch of disappointing U.S. economic data.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 93.92 after falling to lows of 93.84 overnight, the lowest level since August 26.

The dollar weakened broadly on Wednesday after data showing that retail sales edged up 0.1% last month after being flat in August, while core retail sales, which strip out auto sales, fell 0.3%.

A separate report showed that the producer price index fell 0.5% in September, the largest drop since January.

The weak data was seen as reducing the chances for Fed lift off in the coming months.

The U.S. central bank left rates on hold at its September meeting amid concerns that a China-led slowdown in global growth could affect the U.S. economy.

Weak Chinese inflation data on Wednesday added to concerns over deflationary pressures in the world’s second-largest economy.

EUR/USD was at 1.1480, after touching overnight highs of 1.1494, the most since August 26.

USD/JPY eased to 118.72, not far from Wednesday’s lows of 118.62.

Investors were looking ahead to U.S. economic reports on consumer prices and jobless claims later in the day for fresh indications on the economic outlook.

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