The US dollar has lost its luster and has plunged to a six-week low against major currencies, prompting investors to sell the dollar for higher-yielding currencies and assets.
The Euro, meanwhile, rose 0.3 percent to $1.4139, near a $1.4165 session peak and off the day’s low of $1.4056, according to Reuters data released Thursday.
This comes as the Sterling climbed as high as $1.6462 before easing to $1.6449, up 0.1 percent.
“Positive earnings and optimism in equity markets are really what’s been weighing on the dollar this week,” said Vassili Serebriakov, a strategist at Wells Fargo in New York.
“The data, at least in the near term, is likely to add to the optimistic mood in equity markets and hurt the dollar.”
The data in May showed the US with overall net capital outflows of $66.6 billion.
The dollar slipped more than 6 percent that month against major currencies — largely due to rising optimism about a global recovery.
Since 2001, the value of the US dollar has declined by over 30 percent against other major international currencies. In early November, the US dollar fell to its lowest ever against the euro and the Chinese yuan, and became the cheapest in 26 years against the UK pound.
