The US dollar fell today as Forex market participants continued to anticipate that the Federal Reserve will tamper its stimulus program amid signs of recovery.
The Dollar Index dropped 0.4 percent to 80.827. It was the lowest level on a closing basis since February 19. Some analysts point out that employment growth is not stable enough to consider the recovery to be possible even without stimulus. Yet most traders believe that the Fed will reduce its accommodative measures sooner rather than later.
The dollar weakened against the euro too even though the shared 17-nation currency had its own problems. MSCI lowered Greece to the emerging market status yesterday. It was the first developed economy downgraded.
EUR/USD rose from 1.3311 to 1.3327 as of 18:01 GMT today and its daily high of 1.3358 was highest since February 20. GBP/USD advanced from 1.5641 to 1.5677, while its intraday maximum of 1.5698 was strongest since February 12. USD/JPY went down from 96.00 to 95.13 before trading at 95.82.7
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