Gertrude Chavez-Dreyfuss at Reuters reports in “Dollar tumbles to 3-yr low; data underpins rate view” that:

The dollar slumped to a three-year low against major currencies on Wednesday and its outlook darkened further as surprisingly soft economic data underpinned expectations that U.S. interest rates will remain low this year.

The greenback also fell to a record low against the Swiss franc and against the yen fell below 80.50, the lowest level since major central banks intervened to weaken the Japanese currency on March 18.

Separate reports on Wednesday showed a sharp slowdown in the vast U.S. services sector and less hiring by private companies in April.

“U.S. data have not been strong enough for the Fed to resume raising interest rates,” said Geoffrey Yu, senior currency strategist at UBS in Stamford, Connecticut. For details, see [ID:nN04209762]

“The Fed has raised the bar for a policy tightening and it’s going to remain the case for some time ahead. It’s just a question of, When will the Fed really signal a change in direction? Right now, that doesn’t seem to be the case.” . . .

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