Dollar drops on disappointing data

Published: 13 Mar at 5 AM Tags: Euro, Dollar,

The dollar has slipped slightly following disappointing retail sales figures in the US. The greenback had previously been enjoying multi-year highs. The dollar index settled at 99.272 after hitting a peak of 100.060, the highest it has been since April 2003. The 0.4 per cent fall is the steepest in a month.

However, the dollar index, a measure of the US currencies performance against a basket of major rivals, is likely to be up by around 1 per cent before the weekend. According to traders the dollar will probably strengthen as there is no major economic data due out before the end of the week.

The greenback has fallen away from an eight-year peak of 122.04 yen to 121.34. The euro has also recovered slightly from a 12-year low of $1.0494 to settle at $1.0621. The single currency was put under pressure this week as the European Central Bank initiated its latest bond buying programme. The euro was given a boost by positive government bond yields from some eurozone nations.

However, the problems in Greece remain. Athens is currently in talks with its international creditors about obtaining further funding.

Elsewhere sterling has failed to gain against the dollar after the Bank of England said it was not intending to hike interest rates in the near future.