Dollar slides in face of commodity price uncertainty
The dollar continued to slide against the euro and the Chinese yuan in US trading on Tuesday with the Chinese currency rising to its highest level in a decade.
The yuan stood at 0.1248 to the US dollar, while the dollar stood at 0.7804 to the euro.
Yesterday, trading in New York saw the price of a barrel of crude oil fall below $69 as well as declines in metals such as copper, gold experienced the biggest fall in price in six years.
Analysts see the prospect of the US Federal Reserve raising interest rates when it next meets on June 28th-29th, predicted to be a quarter point to 5.25 per cent by October, together with inflation and a price bubble in commodities as the main areas for concern.
Many see the value of the greenback falling further today with speculation rife that Washington is unofficially supporting the move in order to reduce the $700 billion (£372 billion) trade deficit with the rest of the world.
"That is making investors hesitant to buy the dollar aggressively," Nobuo Ibaraki, forex manager at Nomura Trust and Banking, told Reuters. "Sentiment for the dollar is clearly bearish."