Dollar Falls, Consumer Confidence Sinks
Consumer confidence fell to its lowest level in 30-years and did its part to help fuel a weakening dollar as the world looks for the US economy to slow measurably in the coming months. High oil wasn’t helping the cause either. The dollar had rallied from its all-time lows against the Euro seen in April but renewed concerns about US economic output in the face of ongoing housing problems and skyrocketing oil pushed the dollar lower once again.
From Bloomberg on the gloomy state of affairs in the US:
he dollar’s second consecutive weekly decline against the euro pared its increase from the all-time low reached last month to 2.7 percent.
“The economic backdrop in the U.S. argues against the continuing gains in the dollar,” said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York.
The dollar weakened yesterday as a report showed confidence among U.S. consumers fell in May to the lowest level in almost 28 years. The Reuters/University of Michigan consumer sentiment index dropped to 59.5 this month, from 62.6 in April.