The dollar begins to weaken with surprising speed

The US dollar has declined to a 2-month low amid worries that the American economy is stalling following disappointing economic data.

Dollar index against major international currencies dropped for a fifth day. The bloomberg Dollar Spot fell 0.7 percent on Tuesday reaching the lowest level since February 25.

"The current period of dollar weakness appears to be gaining momentum and accordingly likely has further to run," said Camilla Sutton, chief currency strategist at Scotiabank in Toronto.

Also read: Why is dollar strong vs. 18 trillion of USA's debt?

A weaker-than-expected US consumer confidence this month further undermined the dollar. The Conference Board said its index that measures the degree of consumer optimism fell to 95.2 in April from 101.4 in March.

"Consumer confidence today is not helping the dollar at all," said Omer Esiner, chief market analyst at the currency brokerage Commonwealth Foreign Exchange Inc. in Washington.

A report of Federal reserve is expected on Wednesday to show the US economy expanded at the slowest pace in a year. Gross domestic product grew 1 percent in the three months ending March 31, according to economists surveyed by Bloomberg.

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Also read: Uncle Sam in trouble as dollar supremacy declining

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Russia and China should get rid of the dollar dependence
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