In the News

Dovish central banks lift dollar against rivals despite U.S. GDP cut estimate

(Reuters) The dollar rose on Thursday against rivals - which were weakened by dovish soundings from central banks - in spite of a cut to the estimate of U.S. economic growth in the fourth quarter.

The euro weakened 0.12 percent to $1.1234 as speculation grows that the European Central Bank will introduce a tiered deposit rate – a sign that policymakers plan to keep interest rates low for longer. The euro remains above 21-month lows of $1.1167 touched a few weeks ago.

“Divergence in economic performance is still a good provider of dollar strength and the evidence is in its favor when it comes to most indicators,” said Juan Perez, senior currency trader at Tempus Inc in Washington.

Tumbling euro zone government bond yields have also weighed on the euro.

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