The dollar retreated from its highest level in two years
09:50 - 02/10/2019
dollar fell on Tuesday from its highest level in more than two years, died of data weakness in the US industrial sector and increase without expected showing in construction spending.
Against the yen, the dollar weakened from a two-week high as the weak manufacturing report fueled concerns that the United States may be heading for recession.
"We estimate that this weakness is at least partly due to a general strike at GM that began in mid-September," said Paul Ashworth, chief US economist at Capital Economics in Toronto.
A few weeks ago, United Auto workers began their first general strike in 12 years.
The factory sector report confirms that “despite some monetary tightening in recent days, the Fed will cut interest rates by an additional 25 basis points.”
In late afternoon trading, the dollar index fell 0.3 percent to 99.12, after touching The
euro rose 0.3 percent to $ 1.0935, while the US currency fell 0.4 percent to 107.70 yen.
The Australian dollar slipped 0.7 percent to $ 0.6710 after the Reserve Bank of Australia cut its cash rate to a record low of 0.75 percent.