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Dollar slips on signs of weakening global economy

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The dollar slipped against most major currencies on Tuesday after poor data in China and Europe bolstered prospects the Federal Reserve will delay hiking its key interest rate.

[NEW YORK] The dollar slipped against most major currencies on Tuesday after poor data in China and Europe bolstered prospects the Federal Reserve will delay hiking its key interest rate.

"The dollar surrendered some strength as fresh signs of a weakening world economy seemingly tossed a US rate hike further into the future," said Joe Manimbo of Western Union Business Solutions.

Mr Manimbo said the greenback fell after Chinese imports plunged more than 20 per cent, British inflation fell below zero and investor sentiment in Germany slumped to its lowest level in a year.

"The Fed is all but certain to stand pat on rates when it meets in two weeks," the analyst said.

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The euro rose despite the gloomy sentiment reading in Germany, Europe's biggest economy. The single currency advanced to US$1.1381 from US$1.1363 late Monday in New York.

The pound sold off after Britain's annual inflation rate registered a negative 0.1 per cent in September, after a zero reading in August. Muted inflation suggests that the Bank of England will hold off any hike in ultra-low rates, economists said.

AFP

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