The US dollar has plunged to a nine-month low against a basket of currencies and commodities.
Photo: Paul JeffersThe US dollar is down nearly 3 per cent against a broader basket of emerging markets and currencies over the past 24 hours.
The US Treasury also released its quarterly US unemployment rate, which is currently at 6.3 per cent.
The dollar fell against a range of currencies on Tuesday, falling to a six-week low against the greenback against the euro, the Japanese yen and the Australian Dollar.
“The US has been very active in recent weeks, so the global economy has been going in a very different direction,” US treasury secretary Jacob Lew said in a news conference on Tuesday.
“It’s not necessarily a bad thing for the US economy because the US is the largest importer of goods, and so the US will benefit from the global economic downturn.”
The dollar has been down nearly 7 per cent over the same period, and was last at a nine month low against other currencies.
“The reason why we’re seeing these two big movements is the fact that the dollar is very vulnerable to some of the movements in other currencies,” Mr Lew said.
“We have seen the euro sink more than 3 per, and the Japanese Yen sink more then 3 per.”
The Australian dollar is currently trading at $US8.10, down from its June low of $US1.85.
It has dropped in recent months against the dollar and the greencoin, and has also dropped against the Japanese currency, the Bank of Japan’s official interest rate, and against other commodities, including gold.
The dollar was last trading at around $US9.75 on Tuesday morning.
Topics:business-economics-and-finance,economy,industry,markets,currency,americas,united-statesFirst posted June 12, 2019 15:42:55Contact Ben Smith