Dollar dips as economic expectations fall
The dollar fell yesterday as a leading index of economic growth decreased.
At the start of today the dollar stood at 0.78105, £0.52545 and 116.505 yen.
Research body the Conference Board's index of leading economic indictors fell by 0.2 per cent, placing the annual index down by 1.2 per cent.
However, the Conference Board said the data shows a "flat" trend rather than a weakening one.
The body stated: "Weaknesses and strengths among the leading indicators have been fairly balanced in recent months, resulting in a trend that is more flat than declining.
"Weakening housing permits and consumer expectations made the largest negative contributions to the leading index from February to August, offsetting significant positive contributions from average weekly hours in manufacturing and vendor performance."
The dollar continued to suffer from Wednesday's decision by the Federal Reserve to keep rates at 5.25 per cent.
In a statement, the federal open market committee said that although inflationary pressures seemed likely moderate over time, the risks still remain and "additional firming", or further rate rises, could be necessary depending on future inflation and economic growth data.