The dollar fell to a one-week low on speculation the Federal Reserve may face headwinds as its considers higher interest rates while central banks in the U.K. and Canada signaled confidence in their economies.
The U.S. currency weakened against the pound as Bank of England policy makers said the U.K. economic outlook remains healthy and market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. The Bank of Canada said Wednesday that the nation’s economic growth remains on pace.
The dollar fell 0.7 percent to $1.1283 per euro as of 2:41 p.m. in New York, reaching the lowest level since Sept. 1. It dropped 0.5 percent versus the Canadian dollar and 0.7 percent against the pound.