US dollar weakens after poor productivity numbers

[NEW YORK] The US dollar fell against the euro and the yen on Tuesday following US government figures which showed a decline in second-quarter productivity.

Towards 2100, the euro was at US$1.1115, up from US$1.1084 at 2100 GMT the day before. The US dollar fell to 101.88 yen, down from 102.45.

However, the British pound fell slightly to US$1.3000 from US$1.3040.

The Labor Department reported Tuesday that second-quarter productivity had fallen 0.5 per cent, marking a decline for the third consecutive quarter, a negative result which could lessen the likelihood of an increase in US interest rates in the near future.

Surprisingly robust second-quarter job figures published Friday had helped keep the US dollar strong in recent days.

Boris Schlossberg of BK Asset Management told AFP that investors were taking profits made since the jobs report, but that markets otherwise were without direction.

AFP