The dollar weakened on Wednesday after official data confirmed the U.S. economy slowed to a near stand-still in the first quarter.
The U.S. Commerce Department’s report showed gross domestic product inched up by just 0.1 percent in the first quarter of 2014 compared to the 2.6 percent increase in GDP in the fourth quarter of 2013.
While economists had anticipated a notable slowdown in the pace of GDP growth, they still expected an increase of about 1.2 percent.
However, Federal Open Market Committee members voted unanimously to reduce the amount of cash it will inject into the economy for the fourth straight meeting, to $45 billion a month from $55 billion.
Policy makers think the economy will pick up for the rest of the year following the weather-related first quarter lull.
The dollar slipped to $1.3870 versus the euro, edging near a two-week low.
Traders largely ignored news that Eurozone inflation accelerated less-than-expected in April. The tame inflation data is increasing pressure on the European Central Bank to act at next week’s policy meeting.
The dollar slipped to $1.6880 versus the sterling and was down fractionally at Y102.10 versus the yen.
In other economic news, private sector employment in the U.S. continued to show significant growth in the month of April, according to a report released by payroll processor ADP on Wednesday, with the pace of job growth exceeding economist estimates.
ADP said private sector employment surged up by 220,000 jobs in April following an upwardly revised jump of 209,000 jobs in March.
Published: 2014-04-30 19:39:00 UTC+00
Dollar Falters On Dismal U.S. Growth Figures
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