The US dollar fell against the Japanese yen today to the lowest level since November 2009 after the economic report suggested that the US economic growth slows, decreasing the appeal of the US currency.
The growth of the gross domestic product slowed in the second quarter of this year to the annual rate of 2.4 percent from the growth of 3.7 percent in the first quarter. The University of Michigan index of the U.S. consumer sentiment dropped sharply from 76.0 in June to 67.8 in the July.
The second quarter of 2010 was worse for the U.S. economy that the first quarter. July was particularly bad for the U.S. currency. The market analysts think that one of the main reasons for the downturn is the dovish sentiment of the Fed. James Bullard, the President of the Federal Reserve Bank of St. Louis, stated yesterday that the U.S. economy is heading to the Japanese-style deflation.
USD/JPY tumbled to 86.38 from 86.77 today as of 16:18 GMT after it reached the lowest level this year � 85.96. GBP/USD extended its rally, rising from 1.5610 to 1.5710, after falling to 1.5551. EUR/USD fell to 1.3065 from 1.3076 after touching 1.2980, but currently rises.
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