Dollar Slips Against Some of the Major Currencies with Speculation Indicating no Interest Hikes Soon

The dollar lost ground and dropped to its eighteen months low against vs. the Japanese currency yen. The greenback also reached its weakest point against the euro since August with speculation indicating that the Federal Reserve will not raise interest rates in the close future.

The dollar has been dropping against a basket of major currencies in the past month with traders not too optimistic about an interest rate increases June to twelve percent.

Following data that revealed the U.S manufacturing I did not expand in line with expectations, the Bloomberg Dollar Spot Index dropped to its lowest in almost one year.

Last week, after the Fed's meeting, expectations started to fade away for a hike in interest rates anytime soon with the Fed officials downgrading their assessment about the U.S economic growth. They however emphasized on the improvement in labor market and less adverse headwinds in overseas markets.

The manufacturing in the United States revealed a slower growth in April than forecasted. Factories carried on struggling with sluggish global demand and the undermined energy industry.

In contrast to the U.S data, the Europe's April data revealed that the economy in the first quarter expanded more than forecasted by the analysts. Unemployment dropped in March to its lowest level since 2011.