The dollar has started this week losing versus important currencies after the Federal Reserve made dovish statements regarding the country’s interest rates outlook, shunning investors to purchase assets in North America, making riskier assets to climb considerably.
After the Federal Reserve stated on its interest rates decision today that they shall remain low for an extended period, a number of currencies gained versus the dollar, specially the euro as Standard & Poorâs affirmed the nationâs credit ratings and financial officials in the region are building viable strategies to solve Greece’s budget deficit issues. The Canadian dollar is once again towards parity with its U.S. counterpart as appetite for risk influenced markets strongly related with the loonie rates, as commodities and stocks.
The signs of improvement in the U.S. economic fueled speculations regarding sooner than expected rate hikes, and today’s statements from policy makers were quite a hard blow for the dollar, according to specialists. The dollar may lose its strength and may resume gains when odds of rate hikes increase again.
EUR/USD traded at 1.3764 as of 23:17 GMT from a previous intraday rate of 1.3687.
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