Dollar Flat Ahead of Fed Meeting and Employment Data
The dollar dipped Monday, as weaker-than-expected U.S. consumer-spending data undercut the case for the Federal Reserve to raise interest rates at a faster pace in coming months.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.1% at 89.61.
Americans' spending was flat for the second straight month in March as inflation headed lower, a release from the Commerce Department showed. The numbers add to a growing body of data that suggest the economy may not be strong enough for the Fed to tighten monetary policy at a faster-than-expected rate.
Lower rates make the dollar less attractive to investors seeking yield.
Most investors expect the Fed to leave rates on hold at the conclusion of its monetary policy meeting on Wednesday. Market participants will also be watching U.S. employment data for April, scheduled to be released on Friday.
Strong numbers would help lift the dollar from its recent lows, said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, in a note to investors.
The WSJ Dollar Index is down 3.5% this year.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
The dollar was little changed Monday, as investors awaited a Federal Reserve meeting and U.S. employment data later in the week.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, closed up 0.1% at 89.79, after dipping earlier in the session.
Most investors expect the Fed to leave rates on hold at the conclusion of its monetary policy meeting on Wednesday. Market participants will also be watching U.S. employment data for April, scheduled to be released on Friday.
Strong numbers would help lift the dollar from its recent lows, said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, in a note to investors.
The WSJ Dollar Index is down 3.4% this year, weighed upon by a spate of weaker-than-expected economic data in the U.S. that has undercut the case for the Fed to raise rates at a faster pace. Lower rates make the dollar less attractive to investors seeking yield.
That run continued Monday, as a pair of data reports came in below expectations.
Americans' spending was flat for the second straight month in March as inflation headed lower, a release from the Commerce Department showed. The numbers add to a growing body of data that suggest the economy may not be strong enough for the Fed to tighten monetary policy at a faster-than-expected rate.
Meanwhile, data from the Institute for Supply Management showed that manufacturing activity expanded at a slower pace in March.
That was the second straight monthly decline and mirrors other surveys that showed soaring optimism following the election of Donald Trump settling down to more sustainable levels.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
May 01, 2017 18:51 ET (22:51 GMT)