Economic news

Dollar posts largest weekly falld as rally loses steam

The dollar lost a quarter of a percent versus a basket of its major counterparts on Tuesday, its largest slide in a week, as anticipations rose that the dollar’s recent rally may be losing its steam amid deepened trade tensions.

Photo: Reuters

Since mid-April, the greenback has surged more than 6 percent versus a basket of its rivals and after the U.S. Federal Reserve increased interest rates and trade tensions triggered traders to buy the U.S. currency.

Monthly employment figures last week showed the strength of the economy and inflation numbers due later this week is likely to show price pressures remain steady. Analysts polled by Reuters forecast a 3 percent print in July inflation.

The Australian dollar jumped more than half a percent to a one-week peak at $0.7441 versus the dollar after the central bank held monetary policy steady and the Chinese stock market leaped sharply towards the close, supporting risk appetite.

The euro added a quarter of a percent to 1.1583 after sliding to $1.1530 in the previous session, its trough since June 28 following monthly German industrial orders below forecasts.

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