- July 28, 2018
- Posted by: Trading
- Category: News
Investing.com – The U.S. dollar was lower on Friday, following a report that the U.S. economy expanded at its fastest rate in four years.
The , which measures the greenback’s strength against a basket of six major currencies, was down 0.11% to 94.47 as of 10:27 AM ET (14:27 GMT).
The U.S. economy accelerated as expected in the second quarter, underlining the case for the Federal Reserve to gradually increase interest rates.
Gross domestic product registered a seasonally-adjusted annual rate of 4.1% growth in the second quarter, its fastest rate of growth since the third quarter of 2014.
Trade tensions lingered, however, with some analysts observing that the second-quarter growth is unsustainable given trade tensions between the U.S. and other countries.
The dollar was lower against the safe-haven yen, with decreasing 0.20% to 111.00. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
Elsewhere, the pound inched higher, with rising 0.07% to 1.3117.
The euro was higher after the dollar fell, despite the European Central Bank keeping rates unchanged on Thursday and reiterating its plan to slowly end its accommodative monetary policy. rose 0.11% to 1.1655.
The Australian dollar was higher, with rising 0.46% at 0.7411, while inched up 0.09% to 0.6798. The loonie was higher against the greenback, with down 0.08% to 1.3060.
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