Dollar Hits 2-Month Low Against Euro

Dollar vs. Euro

Confidence in the U.S. economy continues to falter and is causing the USD (USD) to slip.  Thursday saw the dollar's two month low against the Euro and lowest level in about a year to the Yen.

Boris Schlossberg, director of currency research at GFT Forex, reported that "economic data has hardly been robust and has not been U.S.-supportive.  For that reason, the dollar is really sinking against the euro, yen and pound."  

Schlossberg argues that the yen has benefited most from the weakening dollar.

"The dollar-yen relationship is the most interesting, but the one that no one is talking about," said Schlossberg. "U.S. interest rates have really come down on expectations the U.S. growth will be muted, and as a result, the dollar has substantially declined against the yen."

Schlossberg is concerned that the dollar will lose its place as the default safe haven during economic depressions.  Amidst fears of the future for the U.S. economy, investors are instead turning to other currencies.