Dollar falls on slower economic growth prospect, eurozone debt concern

Posted on May 17, 2011 in AllEconomic News
The U.S. dollar fell against major currencies in late New York trading on Monday as economists lowered U.S. economic growth projections and European finance ministers met to discuss Portugal and Greece debt issues.

Economists cut projections for 2011 U.S. economic growth from 3. 3 percent to 2.8 percent, but maintained its forecast for moderate economic growth through 2012, according to a survey released by the National Association for Business Economics on Monday.

The greenback was hurt by gloomy economic growth prospect. The dollar index fell to 75.392 on Monday from 75.761 on Friday.

European finance ministers started a two-day meeting in Brussels on Monday to discuss details of Portugal’s bailout and how to address Greece’s renewed debt problems, which helped to lift the euro.

Although the International Monetary Fund (IMF) chief Strauss- Kahn was arrested on Sunday on alleged sexual assault against a hotel maid in New York, most investors believed the incident would not affect the role of the IMF in dealing with the ongoing European debt crisis.

In late Monday trading, the dollar bought 80.84 yen, unchanged from late Friday, and the euro rose to 1.4192 dollars from 1.4110.

The British pound also rose to 1.6211 dollars from 1.6174. The dollar fell from 0.8923 to 0.8832 against Swiss francs, but rose to 0.9732 Canadian dollars from 0.9682.

via Dollar falls on slower economic growth prospect, eurozone debt concern – People’s Daily Online.