RTTNews - The dollar continued to take a brutal beating by other majors Friday in New York, as traders continued their exodus from the world's reserve currency amid speculation that the global economy is on the mend.
With traders convinced they are seeing green shoots despite a run of sobering economic data from the world's biggest economy, the multi-year highs seen by the dollar during the depths of the financial crisis seem a distant memory.
The dollar fell to its lowest level in 2009 versus the euro and remained under heavy assault by the sterling. The yen has joined the party this week, and resource-linked currencies like the loonie and aussie have been bolstered by rising oil and metals prices.
There was little economic news from the to drive currencies, but traders mulled over the latest interest rate call from the Bank of Japan and some data from across the Atlantic.
Earlier this week, the minutes of the last FOMC policy-making meeting revealed that Fed governors foresaw a deeper recession than initially projected.
Although the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time, the statement read.
On Friday, the dollar plunged to a nearly 7-month low of 1.5915 against the sterling, extending its dramatic move away from January's 23-year high of 1.3501.
The buck dropped to its lowest this year versus the euro, falling to 1.4025, having dropped more than 10 cents over the past month.
The buck slipped to a 2-month low of 93.84 against the yen, edging closer to a 13-year low of 87.08, set back in January.
Friday, the Bank of Japan upwardly revised its economic view for the first time since July 2006. The central bank also decided to leave the key interest rate unchanged and expanded the range of eligible collateral to ensure financial market stability.
With the price of oil hovering above $60 a barrel, the dollar fell sharply versus the loonie, slipping to a new 7-month low of 1.1203.
Canadian retail sales increased for the third consecutive month in March, rising 0.3% in current dollars to $33.9 billion, according to data released Friday morning by Statistics Canada. Higher sales at new car dealers was the main contributor to this increase. In volume terms, retail sales rose 0.7%.
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