Dollar dips as markets await US data

The dollar weakened further against the euro today as traders prepared themselves for some key US economic data.

The dollar weakened further against the euro today as traders prepared themselves for some key US economic data.

The euro stood at $1.1851 from $1.1837 - only around half a cent below the all-time record high it reached at the end of last month.

The US currency took a particular battering against the pound after the Bank of England decided against a rate cut of its own, falling to its lowest level against sterling for more than three and a half years.

Although the European Central Bank cut interest rates by 50 basis points to 2 per cent, much of this monetary weakening had already been factored in, analysts said.

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"The dollar downward trend is re-emerging," said strategist Mr Tony Norfield from ABN Amro.

Attention was therefore being focused on any further signs of US economic weakness in key payrolls data due out later today.

Markets were paying particular attention to this in the wake of grim figures for new orders from US factories in April, released yesterday, which saw a 17-month record dive.

AFP