Thu, 13 Aug 2020

U.S. dollar dips amid grim economic data

Xinhua
31 Jul 2020, 06:30 GMT+10

NEW YORK, July 30 (Xinhua) -- The U.S. dollar weakened in late trading on Thursday as market participants digested a slew of downbeat data.

The dollar index, which measures the greenback against six major peers, fell 0.49 percent at 93.0219.

In late New York trading, the euro increased to 1.1837 U.S. dollars from 1.1764 dollars in the previous session, and the British pound increased to 1.3085 dollars from 1.2961 U.S. dollars in the previous session. The Australian dollar rose to 0.7175 U.S. dollar from 0.7168 dollar.

The U.S. dollar bought 104.82 Japanese yen, lower than 105.03 Japanese yen of the previous session. The U.S. dollar decreased to 0.9096 Swiss franc from 0.9138 Swiss franc, and it increased to 1.3443 Canadian dollars from 1.3364 Canadian dollars.

On the data front, the U.S. economy contracted at an annual rate of 32.9 percent in the second quarter amid mounting COVID-19 fallout, the U.S. Commerce Department reported Thursday.

The decrease in real gross domestic product reflected decreases in personal consumption expenditures, exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending that were partly offset by an increase in federal government spending, according to the "advance" estimate released by the department's Bureau of Economic Analysis.

Moreover, U.S. initial jobless claims, a rough way to gauge layoffs, came in at 1.434 million in the week ending July 25, an increase of 12,000 from the prior week's revised level, the Department of Labor said on Thursday. The previous week's level was revised up to 1.422 million.

The newly-released grim data led to doubts about a quick recovery of the U.S. economy, experts noted.

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