Dollar hits lowest level in more than 21/2 years

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Greenback is being pushed down by rising geopolitical worries and a rallying euro.

The dollar fell to its lowest level in more than 2 1/2 years yesterday, pushed lower by a rallying euro and rising geopolitical worries.

The ICE Dollar Index, which measures the US currency against a basket of six others, was recently down 0,7 percent at 91,61, its lowest level since January 2015.

A more optimistic growth forecast from the European Central Bank on Thursday lifted the euro by more than 1 percent, adding to the currency’s rapid climb this year. “Right now, the market just has an insatiable appetite for the euro,” said Joe Manimbo, a strategist at Western Union .

The dollar, meanwhile, has been beset by uneven US data and doubts that the Federal Reserve will be able to raise rates a third time this year.

The number of Americans applying for new unemployment benefits jumped last week as Hurricane Harvey disrupted economic activity along the Gulf Coast, data showed yesterday. Expectations that rates will rise at a slow pace tend to weigh on the dollar, as low borrowing costs make the currency less attractive to investors seeking yield.

At the same time, worries over rising tensions between the US and North Korea sparked demand for haven currencies.

The dollar was recently down 0.6 percent to ¥108,62. It fell 0,4 percent against the Swiss franc to 95,29.

Investors were also concerned about Hurricane Irma, which is on a possible collision course with Florida and other Southernstates. — Reuters.

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