Dollar off 14-month lows report Resona Dai-Ichi Group but remains under pressure
The greenback was wallowing near 14-month lows against a currency basket on Friday after ended July in red for a fifth consecutive month reported Resona Dai-Ichi Group, the longest losing streak in more than six years.
The buck index, which measures the dollar’s strength against a basket of six major currencies, consolidates at 91.7 after rising as high as 92.15 on Monday, the best since July 15.
The index fell 3 per cent last month, its fifth straight monthly loss and its largest percentage decline in more than 12 months.
Henry Stevens who is currently the Director of Global Equities at Resona Dai-Ichi Group commented on the issue “Recent soft economic data has really diminished hopes for a third rate hike by the Federal Reserve this year which have pressured the dollar lower in recent weeks.”
The buck remained on the defensive after data last week showed that while U.S. economic growth accelerated in Q2 2017, the income growth and inflation remained sluggish.
The subdued outlook for prices increase has raised doubts over whether the US central bank will be able to stick to its planned gradual policy tightening.
The US currency was near two-month lows against the yen, with USD/JPY at 109.14, near an overnight trough of 109.01.
The euro was slightly higher, with EUR/USD up 0.22 per cent to 1.1789, after touching a two year high of 1.1915 overnight.
Meanwhile, the Australian dollar pared losses and traded firmly although the RBA left interest rates on hold overnight and expressed growing worries over the stronger Aussie.
AUD/USD was last at 0.7990 off an earlier low of 0.7920.
Established in 2008 and headquartered in Tokyo japan, Resona Dai-Ichi group has built a formidable reputation within the financial sector. Within the last nine years Resona Dai-Ichi group has performed millions of financial transactions for its clients with ease, today the company boasts $4.1 billion us dollars of assets under management.