© Reuters. Euro falls to day’s lows, trade fears hit loonie
Investing.com – The euro fell to the day’s lows on Tuesday amid fresh fears over political developments in Italy, while the Canadian dollar dropped to two-month lows amid fresh trade concerns and oil price declines.
was down 0.32% to 1.1660 by 10:37 AM ET (14:37 GMT), from 1.1717 earlier.
The single currency was pressured lower after a speech by the of Italy’s new populist government raised the prospect of clashes with the European Union over economic policy.
The euro was also lower against the yen, with down 0.34% to 128.00.
The dollar was little changed against the Japanese currency, with at 109.80, extending its recovery from a five week low of 108.10 set last Tuesday.
Demand for the dollar continued to be underpinned after strong U.S. employment data on Friday cemented expectations for a June rate hike by the Federal Reserve and revived expectations for a fourth rate hike this year.
The Fed is widely expected to raise interest rates at its upcoming meeting next week, following on from its last rate hike in March.
Data on Tuesday showed that the rate of growth in the accelerated again in May, adding to optimism over business conditions.
The greenback rose to its highest level in two months against the Canadian dollar, with advancing 0.82% to 1.3039.
The loonie was hit following reports that U.S. President Donald Trump is considering a shift in the negotiations on the North American Free Trade Agreement, to .
The commodity linked Canadian dollar was also pressured lower by falling oil prices.
Oil prices weakened after reports that the U.S. has asked Saudi Arabia and some other OPEC producers to .
The , which measures the greenback’s strength against a basket of six major currencies, was up 0.24% to 94.25.
The pound was slightly higher against the dollar, with last at 1.3340 after rising as high as 1.3392 earlier.
Sterling was boosted by data indicating that the is showing signs of recovering from its recent slowdown triggered by bad weather, reviving expectations that the Bank of England might raise interest rates in August.
Elsewhere, the Mexican peso fell to 15-month lows against the U.S. dollar after the central American country confirmed that it will impose against U.S. imports.
hit a high of 20.45, the strongest level since February 2017 and was last at 20.39
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