Worries about strong dollar’s economic impact push it lower

The dollar weakened against its main rivals Tuesday, adding to losses from Monday’s session, as investors worry that U.S. officials are growing more concerned about the strong dollar’s impact on the U.S. economy.

The worries were triggered by a Bloomberg report from Monday, which alleged that President Obama complained about the strong dollar to a group of G-7 delegates. Obama has denied the report, but investors’ worries have persisted.

“There’s a sense that both monetary policy makers and lawmakers may be starting to become uncomfortable with the dollar’s strength, and that’s starting to cap some of the [dollar’s] upside here,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.

Profit-taking after the large gains that followed Friday’s nonfarm payrolls report also weighed on the dollar Monday, analysts said. By the end of the session, the greenback had surrendered all of its post-jobs report gains, and then some.

The ICE U.S. dollar index DXY, +0.00% a measure of the dollar’s strength against a basket of six currencies mostly comprising the euro, was down 0.1% to 95.1740.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my