Dollar Gains Against Currencies Of Commodity Exporters

By Ira Iosebashvili 

        The U.S. dollar strengthened against the currencies of commodity-producing countries on Friday, as prices for raw materials fell amid fears of slackening demand from China.
        The Australian dollar was recently down 1.1% at 72.73 U.S. cents, its lowest level in more than six years.
        The U.S. dollar was up 0.2% at 8.1981 Norwegian kroner. It rose 1.3% to 58.52 Russian rubles, its highest level since April, while gaining 0.3% to 16.27 Mexican pesos, a record high.
        Factory activity in China slowed to a 15-month low in July, a private survey of the country's manufacturing sector showed. The data heightened worries that China, the world's largest consumer of raw materials, won't be able to stem a decline in economic growth despite a series of stimulus programs launched by the government in recent months. As demand falls, many commodity exporters have failed to rein in production, stirring fears of a supply glut.
        The concerns have weighed on prices for everything from oil and copper to coffee, hurting the economies of commodity-exporting countries.
        "The macroeconomic data for these commodity exporters is getting worse and it's really bringing down the currencies," said Win Thin, a strategist at Brown Brothers Harriman.
        The euro was recently down 0.1% at $1.0976. Against the Japanese currency, the dollar eased 0.1% to Yen123.75.
        Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
        (END) Dow Jones Newswires

        July 24, 2015 14:06 ET (18:06 GMT)

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