The Dollar was lower Monday, falling to the lowest level in 3 weeks against the EUR on speculations the U.S economic recovery will lag behind the rest of the world. Risk appetite increased following a better than expected surge in Chinese trade. The Dollar was further pressured by comments by a Federal Reserve official who stated that interest rates are likely to remain low for quite some time.
In today's early trading the Dollar is at $1.4490 per EUR from $1.4513 in New York yesterday, when it declined to $1.4557, the weakest level since Dec. 16. The USD is at 92.00 Yen from 92.09.
The Dollar's decline was prompted last Friday after the release of a disappointing Non Farm Payroll report, which showed payrolls dropped by 85,000 in December, as opposed to slight increase anticipated by investors. The disappointing data reduced expectations the Federal Reserve will raise interest rates sooner than expected. While negative mood regarding the U.S economy persists, Stronger than anticipated exports from China in December, fueled a rally in the EUR and other higher yielding currencies as optimism regarding the global economic recovery improved.