Tuesday, October 28, 2014

dollar slid lower against the yen

The dollar slid lower against the yen and the euro Tuesday after a measure of U.S. manufacturing fell for a second consecutive month, suggesting growth may be slower in the third quarter and interest rates may stay lower for longer.
The dollar fell to JPY107.78 from JPY108.12 ahead of the data, trading flat early in the Americas session. The euro rose to $1.2752, from $1.2710 beforehand, up 0.4% on the day.
Purchases of durable goods slid 1.3% in September from one month earlier to $241.63 billion, the second straight drop, the Commerce Department said. Economists predicted orders would rise by 0.7% in September.
The dollar's moves on second-tier data reflects the market's nervousness about the health of the U.S. economy and its effects on interest rates. Investors had been buying the U.S. currency in preparation for higher interest rates, which would boost yields on dollar-denominated assets. With the Federal Reserve meeting this week, investors are less certain.