(Jun 8 Reuters) The dollar hit a five-week trough against a basket of currencies on Wednesday, hurt by waing expectations that the Federal Reserve will raise interest rates anytime soon.
The dollar index, which tracks the greenback against a basket of six rivals, edged down 0.1 percent to 93.740 after dropping as low as 93.68, its lowest since May 6.
Against its Japanese counterpart, the dollar slipped 0.25 percent to 107.15 yen, after hitting a low of 106.72 earlier. It climbed from those lows after data showed that China's imports beat forecasts in May, adding to hopes that the economy may be stabilising.
Nevertheless, traders are convinced the dollar will struggle to gain higher ground unless incoming data beats expectations. Investors have almost priced out the chance of a rate increase at the Fed Reserve's June 14-15 policy review, and reduced the likelihood of a July rate hike to around 26 percent.
Click on the link below to see the full story from Reuters: (by Anirban Nag)