Investing.com - The dollar was wallowing near 10-month lows on Monday after data showing that China’s economy gained momentum in the second quarter amid lingering doubts over the Federal Reserve’s plans to raise interest rates again this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ticked up 0.11% to 94.99 by 06.13 a.m. ET (10.13 a.m. GMT).
The index touched a 10-month low of 94.86 overnight after falling 0.69% on Friday.
China reported overnight that second-quarter gross domestic product expanded by an annualized 6.9%, driven by strong retail sales, industrial output and exports.
The data brightened the outlook for global growth because China is the world’s second largest economy.
USD/JPY was last at 112.43 after falling to a two-week low of 112.31 overnight.
The dollar weakened broadly on Friday after weak U.S. inflation and retail sales data added to doubts over the Fed’s plans for a third rate hike this year.
The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year but the sluggish inflation outlook has raised questions over whether officials will be able to stick to their planned tightening path.
The euro was a touch lower against the dollar, with EUR/USD slipping 0.1% to 1.1456, still within striking distance of the 14-month high of 1.1488 set last Wednesday.
The pound rallied 1.2% against the dollar on Friday, its largest one-day percentage gain in three months to a high of 1.3093.
The Australian and New Zealand dollars were slightly lower, with AUD/USD pulling back to 0.7822 from the 15-month high of 0.7832 set overnight as the upbeat Chinese data bolstered inflows into higher yielding assets.
NZD/USD slid 0.2% to 0.7331 after rising as high as 0.7361 earlier.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.