The dollar’s downtrend will continue for at least another three months due to the outlook for the Fed’s monetary policy, a Reuters poll of analysts showed yesterday. — Reuters pic
Employment slowed and permanent job losses increased as programmes to help businesses pay wages have lapsed or are on the verge of ending. Economists credited government largesse for the sharp rebound in economic activity after it nearly ground to a halt following the shuttering of businesses in mid-March.
The dollar index was lower on the day, last trading down 0.10 per cent at 92.752, though it remains 1.1 per cent higher than the April 2018 low of 91.74 on Tuesday after the US central bank overhauled its policy framework last week, which would allow it to keep rates lower for longer periods, a negative for the dollar.“Dollar rallies are going to be faded unless there is a major surprise on the risk front,” said Mazen Issa, senior foreign exchange strategist at TD Securities.