Dollar dives to 26-month low ahead of US personal spending data

The US dollar fell on Friday, deepening its losses for the third day, and hit a 26-month low, to head for the largest monthly loss in ten years, after US President Donald Trump raised the possibility of delaying general election from November, and ahead of key data on consumer spending.

The dollar index fell 0.3% to the lowest since May 2018 at 92.55 points, after opening at 92.82, and hit an intraday high of 92.85.

The index lost 0.3% yesterday, after the release of weak economic data that showed a worst downturn in the US history during the second quarter..

US President Donald Trump raised the possibility of delaying general election from November, to allow the American people to vote in a safe manner, which sparked a lot of criticism.

The US dollar index has lost 5% so far during July, to head for the third monthly loss in a row, and the largest since September 2010.

This came due to high risks in most global markets, chief among those are doubts about the US economy ability to recover fast from the coronavirus impact, and Federal Reserve's statements of continued economic support to address the worst crisis since the 1930s Great Depression.

The US Federal Reserve voted on Wednesday to maintain rates near zero while asserting its readiness to use all available tools to bolster the economy against the pandemic.

The Fed pledged after to continue its bond purchases and lending programs, adding that the economy is still behind its pre-pandemic levels, and a full recovery will depend on containing the virus..

Investors are anticipating key US data on consumer spending during June, which accounts for more than 70% of the US GDP.

At 13:15 GMT, the US economy will release the personal spending monthly reading, with forecasts to rise by 5.3% in June vs. 8.2% in May, and the personal income index is expected to drop by 0.8% vs. -4.2% in May.