Dollar hits low against multiple currencies

Dollar hits its low against the Yen, the Euro and many other currencies on Friday, as numerous hopeful signals appear in the world, showing possible slowdown in the pace of decline of world economy.

Positive data reports gave support and strengthened both Euro and the Yen. As a result of recent surveys done by the Ifo Institute in Germany, which indicated that after a long-term low in March, business confidence started it’s improvement at the beginning of the second quarter.

As for the Yen, it’s decline is caused by encouraging news coming from Asian countries, therefore on Friday, the dollar reached its lowest level against the Japanese currency since the end of March.

It is expected by government advisors of China that state economy will grow from 7 to 8% this year. South Korean economy is also stabilizing and surprisingly was able to stop the slow down during the first quarter of 2009, due to the growth of Korea’s gross domestic product by 0.1%.

The US forecast for decline also turned out worse than the post-fact reports. But despite these facts, the dollar hit its intraday lowest against the yen, hitting on Friday the level of $1.3300.

US Dollar also fell against the Canadian dollar, though it was growing the whole week before.