https://finance.yahoo.com/news/dollar-sinks-near-four-month-203000878.html
nvesting.com - The dollar fell to a nearly four-month low against its rivals on Thursday, as investors bet on an ongoing rebound in emerging-market currencies amid improved sentiment in developing economies.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.59% to 93.56.
The dollar lost ground against emerging-market currencies like the South African rand, Turkish lira, and Argentinian peso as investors bet the worst may be over for developing markets.
"We think US growth will remain above trend and economic fundamentals in most (emerging market) countries remain healthy, creating fertile ground for a comeback in EM assets," Goldman Sachs (NYSE:GS) said Wednesday. "We think period of diverging growth rates -- driven by strong US outperformance -- is largely behind us."
Weakness in the dollar was further exacerbated by a stronger euro and pound, despite little sign that EU leaders had warmed up to the UK Prime Minister Theresa May's Chequers proposal, which sets out rules that will govern the U.K's future relationship with the EU after Brexit.
EU President Donald Tusk said the May's proposals would "not work," but the Prime Minister remained defiant, accusing EU leaders of engaging in "negotiating tactics."
"Brexit concerns are not registering either today, despite the complete defeat of Prime Minister Theresa May's Chequers plan at the Salzburg summit," IG's Chris Beauchamp said.
GBP/USD rose 0.78% to $1.3247 on stronger retail sales data, while EUR/USD gained 0.75% to $1.1760.
U.S economic data, meanwhile, did little to support the greenback as the wobble in the housing market continued, while a key manufacturing report topped forecasts.
The Philadelphia Fed said Thursday its manufacturing index rose to a reading of 22.9, from 11.9 in September.
The Commerce Department showed existing home sales were flat in August from the prior month, to a seasonally-adjusted annual rate of 534 million units. Economists were expecting a 0.3% increase to 5.35 million homes.
"We suspect that the combination of sustained price increases and rising mortgage rates has caused many potential buyers to hold off on purchasing homes," Wells Fargo said in a note to clients.
USD/CAD fell 0.12% to C$1.2905, while USD/JPY rose 0.18% to Y112.49.
