Forex - Dollar Slips to Near 2-Week Lows in Subdued Trade


The dollar slid lower on Tuesday, to trade at a near two week low against a currency basket as investors remained subdued ahead of the U.S. Thanksgiving holiday later in the week.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged down 0.13% to 95.94 by 03:33 AM ET (08:33 AM GMT), the lowest level since Nov. 8.

The dollar has been pressured lower by dovish sounding comments late last week from Federal Reserve Vice Chair Richard Clarida and Dallas Fed President Robert Kaplan who raised concerns over a slowdown in global economic growth.

The dollar came under additional pressure on Monday after data showing that sentiment among U.S. homebuilders fell at the fastest pace in more than four-and-a-half years in November.

The U.S. currency has strengthened broadly this year, hitting 16-month highs earlier this month boosted by three Fed rate hikes and a robust economy.

Overall market sentiment remained cautious after steep falls on Wall Street on Monday amid a selloff in tech stocks. Ongoing concerns over the economic impact of the trade conflict between the U.S. and China added to risk-off sentiment in markets.

The yield on the 10-year U.S. Treasury was hovering near seven-week lows at 3.065%.

The dollar dipped to three week lows against the yen, with USD/JPY edging down 0.1% to 112.45.

The euro was a touch higher, with EUR/USD rising 0.14% to 1.1468.

The pound edged up against the dollar, with GBP/USD changing hands at 1.2870, but was little changed against the euro, with EUR/GBP at 0.8908.

Source: www.investing.com