Dollar Stoops to Three-year Low

FILE PHOTO: A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo
FILE PHOTO: A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo
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Dollar Stoops to Three-year Low

FILE PHOTO: A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo
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.



Gold Falls from Two-week Highs as Dollar Ticks Up

A woman holds a gold ornament at a jewellery shop in the old quarters of Delhi, India, May 24, 2023. REUTERS/Anushree Fadnavis/ File Photo
A woman holds a gold ornament at a jewellery shop in the old quarters of Delhi, India, May 24, 2023. REUTERS/Anushree Fadnavis/ File Photo
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Gold Falls from Two-week Highs as Dollar Ticks Up

A woman holds a gold ornament at a jewellery shop in the old quarters of Delhi, India, May 24, 2023. REUTERS/Anushree Fadnavis/ File Photo
A woman holds a gold ornament at a jewellery shop in the old quarters of Delhi, India, May 24, 2023. REUTERS/Anushree Fadnavis/ File Photo

Gold slipped from a near two-week high on Tuesday as the dollar firmed, though losses were capped by bolstered bets on Federal Reserve rate cuts.

Spot gold was down 0.5% at $3,354.56 per ounce, by 1220 GMT. Bullion hit its highest since July 24 on Monday at $3,385.29. US gold futures also fell 0.5% to $3,408.20.

The dollar index rose 0.2% from a one-week low hit earlier in the session, reducing gold's appeal to other currency holders.

Data on Friday showed employment growth in the US slowed more than anticipated in July, with payroll revisions for May and June slashing a hefty 258,000 jobs from previous tallies, Reuters reported.

The CME FedWatch tool now puts the odds of a September cut at nearly 88%, up from 63% a week earlier, with markets largely pricing in at least two quarter-point reductions this year.

"What gold needs to move higher from here is probably (another) weaker US economic data... The other item gold is watching is who US President Trump names as next Fed Governor, potentially the successor of Federal Reserve chairman Jerome Powell," said UBS commodity analyst Giovanni Staunovo.

Trump's dismissal of the labour statistics chief following the weak payrolls report, coupled with news that he will appoint a new Fed governor, added to uncertainty.

Trump also threatened to lift tariffs on Indian goods beyond last month's 25% hike, citing India's continued purchases of Russian oil.

Gold, long seen as a safe haven in times of political and economic uncertainty, typically performs well in a low-interest-rate environment.

"I still do not see traders pushing up aggressively above the $3,450 level unless we have a very clear catalyst," OANDA senior market analyst, Kelvin Wong, said.

Elsewhere, spot silver rose 0.2% to $37.45 per ounce, platinum lost 1.1% to $1,314.50 and palladium shed 1.8% to $1,184.94.

South Africa-based miner Sibanye-Stillwater has asked the United States to consider imposing a tariff on Russian palladium imports to support the long-term viability of US supplies.