AUSTRALIA’S FOREIGN TRADE MARKETS ANALYSIS: The dollar has fallen sharply in recent days as the U.S. dollar continues to lose ground against the euro, the euro and the Japanese yen.
While the dollar is still worth more than the euro by some measures, it is not worth as much as it was in July.
The euro was trading at $1.1857 EUR, up 0.2 per cent.
The Japanese yen was trading 0.22 per cent lower at 105.76 yen JPY.
The Swiss franc was trading down 0.8 per cent at 1.737 franc CHF.
The Canadian dollar fell 0.7 per cent to $US0.8550 CAD.
The Australian dollar fell to $AU1.0555 AUD, down 1.4 per cent from the previous close.
The British pound dropped 0.6 per cent and the Australian dollar to $AUS0,865 AUD, up 1.5 per cent on the previous day.
The U.K. pound rose 0.4 percent to $GBP1.2943.
The Brazilian real gained 0.3 per cent, while the euro weakened 0.1 per cent against the dollar and the yen to $1:1, down 0 per cent or so.
EUR/GBP is the major international exchange rate.
In the past few days, the dollar has gained against the yen, the yen against the Swiss franc and the euro against the Japanese Yen.
The dollar is also losing ground against sterling.
In its latest daily foreign exchange report, the Bank of Japan said that it expects the yuan to weaken by 1 per cent in 2018.
The IMF said the U and European Central Bank will begin easing monetary policy by the end of this year and may also begin raising interest rates later this year.
In a separate note, the IMF said it expects inflation to fall by around 1 per on average to 3 per cent by the year end.
A weaker yen and a weaker U.T.E. will reduce the ability of consumers and firms to borrow money from the International Monetary Fund.
“It is clear that the world economy will be facing a slowing and more painful recovery,” IMF President Christine Lagarde said in a statement.
The weaker U, the stronger dollar and an even weaker global economy will continue to weigh on global demand and growth.
The drop in the euro is the biggest since the global financial crisis in 2008, when the euro lost half its value against the U, and has hit the euro zone hardest.
The currency also fell against the Chinese yuan, which has strengthened, while other currencies have lost ground against gold and other assets.
In July, the U dropped 0 to 0.75 per cent compared with the previous daily close of 1.23 per cent US:EUR.
The yen rose to 109.50 yen JPH, its highest since September.
The pound weakened to $ GBP0.7175 and the Canadian dollar to 77.80 US cents JPY, while it also fell to 70.45 cents US:CAD.
The S&P 500 index lost 0.9 per cent but was up 0,8 per, on record highs, helped by the Nasdaq composite index of tech stocks rising 2.3 percent.
The Dow Jones industrial average lost 0,723.43 points, or 0.29 per cent., to 23,908.07, while Facebook fell 0,928.70 points, closing at 19,074.40.
The Nasdaq gained 0,575.40 points, to 7,085.70.