US DOLLAR WEAKENING PRESSURED BY DISMAL ECONOMIC DATA

New York, 28 Sha’ban 1435/26 June 2014 (MINA) –  The US dollar weakened against most other major currencies on Wednesday as the dismal of U.S. economic data sparked fears that the Federal Reserve is likely to keep low rates policy.

According to a report released by the Commerce Department on Wednesday, The U.S. economy contracted at an annual rate of 2.9 percent in the first quarter. It is the worst performance in five years after previously reported down 1.0 percent.

The report also showed that the increase in personal consumption spending was smaller than expected and the decline in exports is greater, Antara News Agency reported as quoted by Mi’raj Islamic News Agency (MINA).

Another report from the Commerce Department showed the demand for durable goods decreased 1.0 percent in May, reflecting a decline in container transport and defense.

In late New York trading, the Euro rose to 1.3629 dollars from 1.3602 dollars in the previous session, and the British pound fell to 1.6979 dollars from 1.6982 dollars. The Australian dollar rose to 0.9400 dollars from 0.9378 dollars.

The dollar is bought 101.85 yen per dollar, from 101.97, lower than the previous session. The dollar fell to 0.8928 Swiss francs from 0.8942 and move down to 1.0725 Canadian dollars from 1.0741. (T/P04/E01)

Mi’raj Islamic News Agency (MINA)