NEW YORK (AP) - The dollar lost some gains made the previous day as traders tried to figure out Tuesday whether another interest rate cut was in the works.
The dollar resumed its skid against the euro, as the 13-nation currency rose as high as $1.4633 before settling back to $1.4596 in late afternoon trading.
The euro still traded above the $1.4554 it was worth in New York late Monday, when it lost more than a cent as investors, wary of market turmoil, backed away from investing in high-yielding currencies.
The dollar also fell against the pound, as the British currency rose to $2.0674 from $2.0595.
The dollar climbed to 110.69 yen from 110.05 yen, but fell to 1.1265 Swiss francs from 1.1282 Swiss francs Monday.
Meanwhile, the Canadian dollar edged up to $1.0373 Tuesday from $1.0368.
The dollar is suffering from speculation that the U.S. Federal Reserve, which recently cut interest rates twice, may keep doing so even as its major European counterparts and the Bank of Japan have left interest rates unchanged.
Although lower interest rates can jump-start an economy, they can also weaken a currency as investors transfer funds to countries where they can earn higher returns.
The dollar resumed its skid against the euro, as the 13-nation currency rose as high as $1.4633 before settling back to $1.4596 in late afternoon trading.
The euro still traded above the $1.4554 it was worth in New York late Monday, when it lost more than a cent as investors, wary of market turmoil, backed away from investing in high-yielding currencies.
The dollar also fell against the pound, as the British currency rose to $2.0674 from $2.0595.
The dollar climbed to 110.69 yen from 110.05 yen, but fell to 1.1265 Swiss francs from 1.1282 Swiss francs Monday.
Meanwhile, the Canadian dollar edged up to $1.0373 Tuesday from $1.0368.
The dollar is suffering from speculation that the U.S. Federal Reserve, which recently cut interest rates twice, may keep doing so even as its major European counterparts and the Bank of Japan have left interest rates unchanged.
Although lower interest rates can jump-start an economy, they can also weaken a currency as investors transfer funds to countries where they can earn higher returns.
Aucun commentaire:
Enregistrer un commentaire