Array
SINGAPORE/LONDON – The dollar slipped on Thursday after a raft of data showed the U.S. economy is losing momentum, while the yen rebounded as traders continued to bet the Bank of Japan will shift away from ultra-loose monetary policy.
U.S. data released on Wednesday showed retail sales fell by the most in a year in December and manufacturing output suffered its biggest drop in nearly two years, stoking fears that the world’s largest economy is headed for a recession.
The figures prompted a sharp drop in U.S. government bond yields as investors bet the Federal Reserve would be unable to raise rates as high as previously expected and sought out safe assets.
Analysts said the fall in yields, which makes dollar-denominated bonds less attractive, was one factor weighing on the greenback, along with a rebound in Japan’s yen.
The euro was last up 0.23 percent against the dollar at $1.082. It hit a nine-month high of $1.089 on Wednesday before paring its gains.
“The developments make us more confident that the Fed is getting close to the end of their tightening cycle, and support our bearish U.
