(RTTNews) - The dollar fell to its lowest in 2010 versus the yen Thursday morning in New York after data showing the pace of Chinese manufacturing growth slowed in June, a sign that the global economy is stalling.
The buck slumped to 87.70 versus the yen, its lowest level since December 2009. With the loss, the dollar moved closer to last November's 1995 low of 84.80.
Meanwhile, further evidence that European banks are in a better position than once feared propped up the euro for a second day.
The results of a six-day tender for short-term European Central Bankfunds hinted that the region's banks were making good on emergency loans. Yesterday, a three-month offer generated fewer bids than expected.
Still, the euro faces stiff headwinds amid the prospect of more downgrades on sovereign debt.
Spain managed to sell Eur 3.5 billion ($4.3 billion) of five-year bonds at an auction today, hours after Moody's put the nation's sovereign rating on review.
The dollar dropped to 1.2340 versus the euro, extending a recent run of choppy trading. The pair has shown little direction since the dollar hit a 4-year high of 1.1805 nearly a month ago.
Against the sterling, the dollar eased to 1.4970 after touching a weekly high of 1.4875 overnight.
Looking at today's economic calendar, the Labor Department will release its customary jobless claims report for the week ended June 26th at 8:30 a.m. ET. Economists estimate a small increase in jobless claims to 458,000.
At 10.00 a.m. ET, results of the manufacturing survey of the Institute for Supply Management for the month of June will be released. Economists expect the index to show a reading of 59 for June.
The Commerce Department will release its report on construction spending for May at 10.00 a.m. ET. Analysts project that construction spending declined 0.9% for the month.
On Friday, the Labor Department releases its all-important monthly jobs report.
