Today in the beginning of the Asian trading session the U.S. currency cut out previous gains as speculations suggested that in the United Stated, interest rates will be maintained at record lows for an extended period of time, with this it is indicated that in order to surpass the recession, the economy will need further stimulus.

Interest rates in the United States will remain low

Officials of the Federal Reserve are likely to state today that interest rates in the United States will remain low for an undetermined amount of time, according to speculations, this will cause the dollar to lose against most of the 16 major currencies.

A part from speculative moments regarding delays in rate hikes, optimism in Asian stocks has increased risk appetite and brought back the investors to riskier positions.

Before next Summer the rates are unlikely to be changed

It has been indicated by the analysts opinion regarding interest rates in the United States that before next summer they are unlikely to be changed, a period that can be considered long. In the U.S. the crisis was deeper than several other economic regions throughout the world, and a longer recovery can be anticipated, this is weighing on the dollar’s outlook today.

People who liked this Post also read

• Dollar Jumped to 3- Month High; Euro Suffered Loss
  On Thursday the dollar surged to a three-month high Vs a currency basket, buoyed by an upbeat tone from the Federal Reserve, while on fresh concerns about Greece's waning fiscal health the euro......
• Dollar Reduced its Losses As Dubai Debt Fears Remain
  On Monday morning in New York the dollar recovered some of its earlier losses as investors continue to fret over Dubai's debt crisis despite of the United Arab Emirates' move of providing funds to local banks. On the day the U.S. currency remains down aga...
• Dollar/yen claws back from 8-month low, euro hit low
  On Tuesday the dollar edged up against the yen, correcting steep gains that has been made the previous day as Japan's finance minister backtracked over its tolerance of a stronger yen. On Monday the U.S. currency clawed back from an eight-month low......
• What do you understand by Deflation?
  A decline in price levels is referred to as deflation. It is the opposite of inflation in the sense that inflation usually leads to rising prices. Despite of all the facts, deflation can be a very dangerous situation, while in one sense consumers may welc...
• Today Euro Hits 12-Month High, But No Follow Through
  On Wednesday afternoon the euro reached to a fresh 12-month high against the dollar, it has moved above $1.4720. The move to buy the higher-yielding euro came as a result of rise in U.S. stocks and......