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The dollar fell across the board on Wednesday as weak U.S. retail sales data painted a bleak economic picture and provided the basis for further rate cuts by the Federal Reserve.
The dollar index fell 0.30% to 97.998.
US retail sales fell for the first time in seven months in September, suggesting that manufacturing LED weakness could spread to the economy as a whole.
Marc Andre fontern, strategist at MAF Global Forex, said: "the US economy does show further weakness, which provides a reason for the fed to cut interest rates again."
With two weeks to go before the next Fed policy meeting, Fed officials remain divided on the need for a third rate cut this year.
"Overall, retail sales data support our view that economic growth is slowing down," Michael Pearce, senior US analyst at Kaitou macro, said in the report.
The dollar fell the most against other safe haven currencies such as the yen and the Swiss franc.
The dollar fell 0.1% against the yen and 0.39% against the Swiss franc.
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