2021.10.2020:55:00UTC+00Dollar Stays Weak Against Major Rivals

The U.S. dollar stayed subdued against most of its major rivals on Wednesday as signs of a slowdown in U.S. economic activity trimmed rate hike expectations.

Economic activity in the U.S. has recently grown at a modest to moderate rate, according to the Federal Reserve's Beige Book, although the pace of growth has slowed.

The Beige Book attributed the slowdown to supply chain disruptions, labor shortages, and uncertainty around the Delta variant of COVID-19.

The report said a majority of Fed districts indicated positive growth in consumer spending, although auto sales were widely reported as declining due to low inventory levels and rising prices.

Manufacturing grew moderately to robustly in most parts of the country, the Beige Book said, while growth in non-manufacturing activity ranged from slight to moderate for most districts.

The Fed also said employment increased at a modest to moderate rate in recent weeks, but labor growth was dampened by a low supply of workers. On the inflation front, the Beige Book said most districts reported significantly elevated prices, fueled by rising demand for goods and raw materials.

Looking ahead, the report said outlooks for near-term economic activity remained positive, but some districts noted increased uncertainty and more cautious optimism than in previous months.

The dollar index, which dropped to 93.54 a little past noon, continues to remain weak and is hovering around 93.60 now, down 0.14% from the previous close.

Against the Euro, the dollar is down at 1.1652, easing from 1.1636.

The Pound Sterling has firmed against the dollar, fetching $1.3826 a unit, compared to $1.3792 Tuesday evening.

Against the Yen, the dollar is little changed at 114.35 yen.

The dollar is trading at 0.7518 against the Aussie, drifting down from 0.7476

The Swiss franc is up at 0.9192 against the dollar, gaining from 0.9226.

The dollar is weak against the Loonie, fetching C$1.2320 a unit, nearly 0.4% less than the previous close of C$1.2366.