USD Slips as Investors Brace for Cooling US Economy
The dollar slipped against most major currencies, with investors closely watching for signs of cooling in the US economy. The Australian dollar strengthened on favorable labor market data.
The Bloomberg Dollar Spot Index dropped 0.2%, after Federal Reserve Vice Chair Philip Jefferson said tariffs and related uncertainty could slow US growth and boost inflation this year.
Fed policy makers kept rates unchanged last week, saying there were risks of higher US unemployment and inflation.
AUD/USD rises 0.1% to 0.6433, as data showed Australia’s labor market remained resilient even as the Reserve Bank is expected to reduce interest rates further.
NZD/USD drops 0.1% to 0.5894. USD/JPY down 0.4% to 146.14. EUR/USD up 0.1% to 1.1191. GBP/USD gains 0.1% to 1.3273.
Source: Bloomberg