Investing.com - The dollar traded largely lower against most
major currencies on Monday due to uncertainty the effects the Iraq
insurgency will have on U.S. recovery, while an International
Monetary Fund decision to trim its U.S. 2014 growth rate weakened
the greenback as well.
In U.S. trading on Monday, EUR/USD was up 0.18% at 1.3566.
Concerns over the ongoing Sunni insurgency in Iraq continued to
weigh on the dollar Monday by stoking fears that the escalating
conflict could dampen global recovery, especially if the violence
disrupts Iraqi oil exports, hikes prices at U.S. gasoline pumps and
waters down the economy.
Elsewhere, news that the International Monetary Fund trimmed its
2014 U.S. economic growth forecast due to a harsh winter and a
"still-struggling housing market" softened the greenback as
The IMF said it now expects the U.S. economy to expand 2% in
2014, down from its forecast of 2.8% in April.
Positive U.S. data meanwhile did little to boost the
The Federal Reserve Bank of New York reported earlier that its
general business conditions index increased to 19.28 this month
from 19.01 in May. Analysts had expected the index to decline to
A separate report showed that U.S. industrial production rose by
0.6% last month, beating forecasts for a 0.5% gain.
Meanwhile across the Atlantic, Eurostat reported earlier that
the euro zone's consumer price index rose 0.5% last month, in line
with expectations and unchanged from a preliminary estimate. Euro
zone inflation rose by 0.7% in April.
Still, the rate remains firmly below the European Central Bank's
target of near but just below 2%, which capped the single
The dollar was down against the yen, with USD/JPY down 0.14%
trading at 101.85 and down against the Swiss franc, with USD/CHF
down 0.27% at 0.8976.
The greenback was down against the pound, with GBP/USD up 0.06%
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.07% at 1.0849, AUD/USD down
0.05% at 0.9397 and NZD/USD up 0.10% at 0.8674.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.21% at 80.58.
On Tuesday, the U.S. is to produce data on housing starts,
building permits and consumer prices, while investors will be eager
for Wednesday's statement from the Federal Reserve on interest
rates and monetary policy.
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