Dollar still under pressure

Published: 20 Jun at 8 AM Tags: Euro, Dollar,

Although the dollar remains under some pressure, it has managed to reverse some previous losses after the US released positive economic data. Following a disappointing first quarter it now looks like the US economy is on a firmer road to recovery. The dollar index has managed to crawl back from a low of 80.147 to 80.317.

Earlier in the week the Federal Reserve indicated that it was not about to start lifting interest rates. This led to some investors ditching the greenback. However the latest data indicates that jobless figures are down and that factory activity is up.

The dollar has managed to creep back towards 102.00 yen after hitting a low of 101.74 yen. The euro has dropped off its two-week peak of $1.3644 to settle at $1.3610. However it was the Norwegian crown that grabbed investor’s attention by plunging more than 2 per cent.

This was due to the country’s central bank indicating that it was ready to cut interest rates rather than increase them as most analysts had expected.

A growth in factory orders in the UK during June has helped push sterling to $1.7064, the highest the pound has been in more than five years.