Dollar retreats despite US growth picking up in Q3

<p>The dollar has retreated in forex markets despite fresh reports showing US growth was father than first thought in Q3.</p>

The dollar has retreated in forex markets this afternoon (December 20th) despite official figures revealing the US economy has grown at a faster pace in the third quarter of the year than previously thought.

According to the Commerce Department, the nation's gross domestic product (GDP) expanded at an annualised rate of 3.1 per cent, when in November it was projected this figure would be 2.7 per cent in the three months to September 30th.

However, economists still anticipate much slower growth in the final three-month period of 2012, with Hurricane Sandy likely to have impacted on productivity, while the matter of the thus far unresolved fiscal cliff has impacted on confidence.

Indeed, it has been widely anticipated that quarter four will post a 1.5 per cent growth rate.

At 15:00 GMT, the dollar retreated by 0.3 per cent versus the euro to $1 buying €0.753, while it slipped by 0.1 per cent against the pound to £0.614.

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