Dollar, Little Changed, May Extend Slide on Slowing Recovery
By Anna Sathiah
Singapore, May 6 (Bloomberg) -- The dollar may fall against the euro
for a sixth week on concern the U.S. economy's recovery will be
slower than expected, eroding the appeal of U.S. assets.
The U.S. currency traded at 91.69 cents per euro, from 91.73 in New
York Friday, when it reached its weakest level since Oct. 9. It was at
1.5875 against the Swiss Franc, from an eight-month low of 1.5847
reached in New York Friday. Trading was less than usual because
markets in Japan were closed for a public holiday.
``We're looking for further U.S. dollar weakness this week,'' said Jon
Prince, manager of foreign-exchange sales at National Australia Bank
Ltd. in Sydney. ``The Euro and Swiss (franc) seem to be the
benefactors.''
The dollar's slide last week accelerated after a report Friday showed
the U.S. jobless reached a 7 1/2 year high in April, fueling concern an
economic rebound may take longer than projected.
All three major U.S. stock indexes fell after the jobs report, and another
showing a slowdown in growth for services industries.
U.S. growth will slow from its first-quarter rate of expansion of 5.8
percent, bringing it closer to other economies, increasing the appeal of
currencies such as the euro and the Swiss franc, analysts said.
Growth will probably dip to a 3.4 percent pace in the second half of the
year, according to the latest estimate of the Blue Chip Economic
Indicators.
In other trading, the dollar bought 127.00 yen, from 127.01 in New York
Friday. The British pound traded at $1.4695, little changed from $1.4690
in New York. |
