Warren Buffett“A public opinion poll is no substitute for thought.”
Adlin Sinclair“Success is a welcomed gift for the uninhibited mind.”
Dollar Down on Fed Frustrating Statement
Thedollar declined versus anumber ofcurrencies today after theFederal Reserve signaled interest rates will remain low foralonger period, declining attractiveness fortheU.S. currency inforeign exchange markets.
After 2 weeks rallying versus most ofthecurrencies, thedollar cooled down today after a
statement reiterating theposition ofleaving borrowing costs atarecord low foranundefined period, affecting negatively speculations that rate hikes could follow
, which caused one ofthesharpest dollar rally this year that jumped from a15 month low toa2 month high since thebeginning ofDecember. TheAustralian dollar was also affected today byanegative sentiment after policy makers affirmed that further rate hikes are unlikely, declining slightly theattractiveness fortheSouth Pacific currency, one ofthebest performers incurrency markets this year.
Even if theFed halted speculations regarding rate hikes, positive reports are anevident sign that conditions intheU.S. are improving, andthat allows more flexibility forthecentral bank tochange its monetary policy, which is still favorable forthegreenback.
EUR/USD traded at1.4579 asof12:14 GMT from aprevious rate of1.4518 yesterday. GBP/USD traded at1.6374 from 1.6253.
If you want tocomment ontheU.S. dollar’s recent action orhave any questions regarding this currency, please, feel free toreply below.
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