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Dollar Stoops to Three-year Low

Dollar Stoops to Three-year Low

Saturday, 20 January, 2018 - 07:15
FILE PHOTO: A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo

The dollar fell near a three-year low against a basket of currencies on Friday, heading for a 5-week downtrend in a wave of losses that may be the longest since May 2015.

The US currency fell to its lowest level since December 2014 this week.

The dollar index remained close to those levels today, under pressure from fears that the US government might stop working.

The index fell 0.3% on Friday to 90.243, slightly above its Thursday low of 90.113.

The index has lost about 2 percent since the beginning of this year.

The euro rose 0.3 percent to $ 1.2276, near a three-year high of $ 1.2323 hit on Wednesday.

The US currency fell 0.5 percent against its Japanese counterpart to 110.60 yen. The yen recovered from its four-month low, which hit Wednesday at 110.19 yen per dollar.

The pound failed to hold on to previous gains against the dollar, and fell Friday morning by 0.2 percent at $1.38, and fell about 0.3 percent against the euro at 1.31 euros.

The US currency lost its morning gains on Thursday, influenced by mixed US economic data, with better than expected unemployment benefits applications, and disappointing data for new housing projects.

The number of Americans filing for unemployment benefits dropped to a 45-year low last week, Reuters reported.

The Labor Department said initial claims for state unemployment benefits dropped 41,000 to a seasonally adjusted 220,000 for the week.

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