US dollar falls on weak economic data

New York, Oct 15 (IANS) The US dollar decreased against other major currencies on Wednesday as soft economic data from the country dampened market expectation for an interest-rate hike by year-end.

The Labor Department reported on Wednesday that the US Producer Price Index for final demand dropped 0.5 percent in September, seasonally adjusted, exceeding market consensus of a 0.1-percent decline.

The Commerce Department announced on Wednesday that advance estimates of US retail and food services sales for September increased 0.1 percent from the previous month to $447.7 billion, in line with market expectations, reported Xinhua.

The overall soft economic data raised concerns that the US economic growth may be losing momentum in face of a sluggish global economy.

The greenback was further under pressure as the Federal Reserve’s Beige Book said on Wednesday that a strong US currency has restrained tourism and manufacturing.

The dollar index, which measures the greenback against six major peers, was down 0.87 percent at 93.939 in late trading.

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