The U.S dollar softened against higher-yielding currencies during today's Asian trading session on estimations that the Federal Reserve will probably continue keeping its Interest Rate at its current low level for a long time.
The USD also continued depreciating vs. the EUR, reaching a lowest point in a year as traders were careful about aggressively betting against the U.S. currency after seeing Wednesday's sudden slide in U.S. stocks. The greenback also fell against the Japanese yen in Asia Thursday due to heavy selling by Japanese exporters for quarter-end settlement, and dealers say the currency may fall further on lingering concern over the U.S. economic recovery. Investors remain bearish on the Dollar because they believe sluggish consumer spending may slow the pace of recovery in the U.S economy. The U.S dollar will likely remain under pressure ahead of the 2 day meeting of Group of 20 leaders in Pittsburgh today and tomorrow. And with the U.S. Interest Rates set to stay near zero for some time to come, investors are likely to quickly return to funding carry trades in dollars, sending it lower once more. The U.S economy remaining considerably weak we may expect to see the USD decline vs. the Euro-Zone currency to at least $1.49 by the end of the month.