2014.06.2306:48:11UTC+00Dollar gauge dives to month low

A measure of the US dollar plunged to a month low prior to data this week that might show US manufacturing and new home sales slowed down, backing the case for the Federal Reserve to retain rates close to zero.

The greenback surged for quarterly drops against the majority of its 16 major counterparts as analysts predicted the US economy dipped more than previously estimated. A gauge of volatility for the greenback against the Japanese yen held at a record low ahead of Japan’s lawmakers discuss approval of an economic growth plan.

“There’s little economic data that’s going to push the U.S. dollar around this week so it’s hard to see catalysts for it to move outside its recent range. Very low interest rates and very large excess liquidity that the big central banks are putting into the global financial system are dampening volatility,” said Joseph Capurso, Currency Strategist at Commonwealth Bank of Australia.

The Bloomberg Dollar Spot Index slipped 0.1% to 1,008.38 as of 6:49 a.m. in London after it declined 1,008.19 on June 19, the lowest level since May 21. The greenback wiped out 0.1% to ¥101.95. The US currency was at $1.3609 per euro from $1.36 on June 20, when it finished a 0.4% weekly drop, the steepest in two months.