21
Jul
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Dollar Sinks To Near 2-Year Low Against Euro

The dollar is losing ground against all of its major rivals Friday afternoon. The buck has been sinking against both the Euro and the Japanese Yen for the majority of the week and has now reached nearly a 2-year low against the Euro.

Political concerns have contributed to the dollar’s slide this week, as well as hawkish comments from European Central Bank Chief Mario Draghi, suggesting a possible policy tweak.

U.S. special counsel Robert Mueller is reportedly expanding the Russia probe to include Trump’s business transactions stoked worries about economic agenda.

Media reports suggested that Muller is examining a broad range of transactions involving Trump’s businesses as well as those of his associates.

Investigators are looking at Russian purchases of apartments in Trump buildings, Trump’s involvement in a controversial SoHo development with Russian associates, the 2013 Miss Universe pageant in Moscow and Trump’s sale of a Florida mansion to a Russian oligarch in 2008, according to the reports.

The International Monetary Fund on Thursday approved “in principle” a new loan worth $1.8 billion to Greece.

However, the arrangement has been approved in principle, which means it will become effective only after IMF receives specific and credible assurances from Greece’s European partners to ensure debt sustainability.

Further, a second executive board decision is needed to make the arrangement effective.

Greece’s debt remains unsustainable, the IMF noted. In the medium term, Athens needs to achieve primary surplus target of 3.5 percent of GDP.
The dollar has tumbled to a nearly 23-month low of $1.1675 against the Euro Friday afternoon, from an early high of $1.1618.

The buck rose to an early high of $1.2952 against the pound sterling Friday, but has since eased back to around $1.30.

The UK budget deficit widened more-than-expected in June as debt interest increased notably after inflation lifted the cost of index-linked bonds.

Public sector net borrowing, excluding interventions, increased by GBP 2.0 billion from a year ago to GBP 6.9 billion in June, data from the Office for National Statistics showed Friday. The expected figure was GBP 4.9 billion.

The greenback has dropped to nearly a 1-month low of Y111.125 against the Japanese Yen this afternoon, from an early high of Y112.077.

The material has been provided by InstaForex Company – www.instaforex.com

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