US dollar plummets, likely to remain week

US dollar plummets, likely to remain week

The dollar weakened dramatically on Friday on the back of data indicating that US economic growth is slowing down at a rate more than many had expected.

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The Commerce Department's report, which showed that second-quarter US gross domestic product grew by a mere 2.5% versus analysts' projection of a 3.2% increase, caused investors to further downgrade their expectations of an August 8 rate hike by the Federal Reserve.

The greenback plummeted in response and is likely to remain weak throughout next week, analysts said, as investors brace themselves for the Fed's meeting.

Late in New York, the euro was at $1.2723 from $1.2693 on late Thursday, according to EBS.

The dollar was at Y115.20, down from Y115.82 on late Thursday, while the euro was at Y146.47 from Y147.02 on late Thursday.