The US dollar tumbled for the third straight day on Thursday, as super-low interest rates and the crushing weight of a massive budget deficit pushed the greenback closer to an all-time low. The dollar's slide accelerated days after Standard & Poor's sparked fears of a downgrade to AAA-rated US debt by labelling its outlook 'negative,' while investors from central banks to fund managers opted for anything but the US currency.
The US dollar index, which tracks the greenback versus a basket of currencies, fell 0.6 percent to 73.952, having slipped to 73.735, the lowest since August 2008. The chart outlook for the greenback looked dire after it tumbled through a 74.17 trough hit in November 2009, a move that may spark a run towards the 70.698 all-time low hit in March 2008.
The euro climbed to a 16-month high against the dollar near $1.4650, partly helped by M&A-related demand and an increase in risk appetite. The euro last traded at $1.4585, up 0.4 percent. Against the yen, the dollar lost 0.8 percent to 81.80 yen, hitting a session low after an index of business conditions in the US mid-Atlantic region came in well below expectations and at its lowest since November 2010.
Comments
Comments are closed for this article.