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Dollar tumbles to 3-yr low

Dollar tumbles to 3-yr low; data underpins rate view

By Gertrude Chavez-Dreyfuss | Reuters – Thu, May 5, 2011

* Weak U.S. jobs, services data add to dollar’s woes

* Euro hits 17-month high but fades ahead of ECB meeting

* Dollar at 6-week low vs yen; high-yield FX struggles

* One-month euro/dollar implied vols rise again (Updates prices, adds more details on options)

NEW YORK, May 4 (Reuters) – The dollar slumped to a three-year low against major currencies on Wednesday and its outlook darkened further as surprisingly soft economic data underpinned expectations that U.S. interest rates will remain low this year.
The greenback also fell to a record low against the Swiss franc and against the yen fell below 80.50, the lowest level since major central banks intervened to weaken the Japanese currency on March 18.

Separate reports on Wednesday showed a sharp slowdown in the vast U.S. services sector and less hiring by private companies in April.

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