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U.S. dollar drops as concerns over further slowdown build up
Last Updated: 2018-12-21 14:24 | Xinhua
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The U.S. dollar continued to fall in late trading on Thursday, as U.S. Federal Reserves' interest rates hike and slower path of monetary tightening in 2019 added weakness to the greenback amid fears of an economic slowdown across the board.

Investors sentiment remained low as analysts believed that the Fed grew more cautious about global economic outlook.

In its policy statement on Wednesday, the Federal Open Market Committee stressed they "will continue to monitor global economic and financial developments and assess their implications for the economic outlook."

The greenback's weakening liquidity has undercut its safe-haven demand, as repatriation flows of the dollar declined to roughly 93 billion in the third quarter, a sharp fall from the first quarter's nearly 300 billion, according to Reuters.

Thus, some traders turned to other safe-haven currencies such as Swiss franc, which rose against the dollar on Thursday. The market expectation has undercut the greenback's strength that Sweden's central bank would not constrain the flowing of its currency in the future. In a latest poll by Reuters, two-thirds of analysts expected Sweden's Riksbank will keep rates unchanged.

In late New York trading, the euro increased to 1.1469 dollars from 1.1371 dollars in the previous session, and the British pound was up to 1.2670 dollars from 1.2622 U.S. dollars in the previous session. The Australian dollar was up to 0.7118 dollar from 0.7114 dollar.

The U.S. dollar bought 111.11 Japanese yen, lower than 112.35 Japanese yen of the previous session. The U.S. dollar decreased to 0.9869 Swiss franc from 0.9942 Swiss franc, and it rose to 1.3496 Canadian dollars from 1.3494 Canadian dollars.

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