The dollar traded near a one-month low against the euro on speculation a surge in oil
prices to a record will accelerate inflation while slowing economic growth in
the U.S.,
the world's biggest oil importer.
The currency also traded near the lowest level in almost two weeks
versus the yen
before a government report that will probably show falling U.S. house prices.
The New Zealand dollar rose after
Finance Minister Michael Cullen cut taxes, easing pressure on the central bank
to lower interest rates to support the economy.
The dollar fell yesterday after minutes of the Fed's April meeting showed most policy makers
viewed the decision to cut the benchmark interest rate to 2% as ``a close
call,'' judging risks between weaker growth and faster inflation had become
more balanced.
The Federal Reserve cut its 2008
economic growth projection to a range of 0.3% to 1.2% from its January forecast
of 1.3% to 2%, according to minutes of its April meeting.
EUR/USD initially
failed to break above $1.5780 and retreated to lows around $1.5760. Later rate
has got close to $1.5800.
GBP/USD rose
from $1.9615 to $1.9750.
USD/JPY printed
low on Y102.70 before set stable near Y103.10.
Today’s focus is on UK
retail sales figures and CBI orders data. Also in Europe EU industrial orders report due
to come.
At 12:30 GMT US will release its Jobless claims data.