Dollar slightly slower as IMF cuts global growth forecast

The US dollar edged lower against other major currencies on Tuesday as the International Monetary Fund trimmed its global economic growth forecasts and the US trade deficit widened. 

PHOTO: AFP

OCT 7, 20156:50 AM

[NEW YORK] The US dollar edged lower against other major currencies on Tuesday as the International Monetary Fund trimmed its global economic growth forecasts and the US trade deficit widened.

At 2100 GMT, the dollar dropped to US$1.1271 versus the euro, US$1.5230 to the pound, and to 120.21 yen as the IMF said the slowdown in China and emerging markets generally would hold US growth to 2.6 per cent this year and 2.8 per cent in 2016.

Also pulling down the greenback was a jump in the US trade deficit in August as exports slumped.

"Signs that global weakness has caught up with the US economy kept the dollar in a funk," said Joe Manimbo at Western Union.

"Since Friday, the world's top economy has let loose underwhelming news on the job market and services growth, while the trade deficit exploded to its widest in five months, all of which point to cooler growth over the last quarter."

AFP