dollar index slips over fading view US rate hike

By Richard LeongNEW YORK (Reuters) - The dollar fell to a five-week low against a basket of currencies on Wednesday as traders reduce bets of an imminent rate increase US interest following a report poor working positions and dovish comments by the president of the Federal Reserve they are perceived.The euro reached a peak of about four weeks against the dollar even with yields Bund German record lows post as the European Central Bank began to buy corporate debt to its program of buying bonds in an attempt to boost the economy of the euro zone .data stronger than expected Chinese imports boosted dollars Australia and New Zealand and other commodity sensitive currencies against the dollar."With expectations of the level of collapse precipitously in the last week due to aberrant report on the labor market May Friday entry, investors have rushed to recalibrate to the reality that the takeoff Fed is not reaching at least until September , but more likely December, "said Christopher Vecchio, currency analyst at DailyFX in New York.On Monday, Fed Chairman Janet Yellen gave an optimistic view on the US economy, but declined to offer a timetable on a possible rate increase.USA futures interest rates implied traders saw almost no chance that the Fed will raise rates at its policy meeting next week, according to Fedwatch CME Group.The dollar index, which tracks the greenback against six currencies, shed 0.24 percent to 93,601 (DXY). It touched 93.425 earlier on Wednesday, the lowest since May 6.The euro strengthened to $ 1.1397, up 0.4 percent on the day. Their usefulness was limited by persistent fears that are likely to fight if Britain votes on June 23 to leave the European Union's single currency."It could be destabilizing internationally," TD Securities in New York FX strategist Mazen Issa said a "Brexit." "The market is too complacent. It (pound) should be weaker," he said.The pound fell 0.25 percent to $ 1.4508, erasing earlier gains, while the euro rose 0.55 percent to 78.52 pence (EURGBP = D4).Meanwhile, the dollar weakened 0.4 percent to 106.86 yen, holding above a minimum of 4-week period earlier this week. initial losses after data showed that imports from China exceeded forecasts in May, adding to hopes that the world's second largest economy may be stabilizing was cut.Encouraging data from China spurred buying oil, metals and other raw materials, which in turn raised the currencies of exporting countries.The Australian dollar approached a five-week high at $ 0.7473, up 0.2 percent on the day, while the New Zealand dollar rose 0.5 percent to $ 0.7015, not far below a five-week high set earlier Wednesday.