Dollar Weakens to 2-Month Low as Growth Slows More Than Forecast
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The dollar fell to a two-month low after a report showed U.S. growth stalling in the first three months of the year as the Federal Reserve considers when to raise interest rates.
The economy grew at a 0.2 percent annual pace in the first quarter, down from 2.2 percent for the period through December and the slowest in a year. The median estimate of analysts surveyed by Bloomberg before the release called for 1 percent.
“It was a disappointing number and the dollar is weaker,” Eric Viloria, a strategist at Wells Fargo & Co. in New York, said by phone. “It does create a little more uncertainty and it does restrain the dollar a little bit.”
The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, declined 0.3 percent to 1,167.83 as of 8:31 a.m. in New York. It reached the weakest level since Feb. 25 on a closing basis.
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