As the decline in weekly jobless claims and a rise in personal consumption improved the outlook for the U.S. economy, the dollar fell to a fresh 15-month low against a basket of currencies on Wednesday.
Federal Reserve minutes
Traders had earlier sold the dollar across the board, which results in pushing the dollar to a 10-month low against the yen, as it has been showed by Federal Reserve minutes released on Tuesday that policymakers saw the U.S. currency’s recent decline as “orderly”.
It has also been affirmed by the minutes that expectations U.S. interest rates will stay essentially at zero until around mid-2010.
Investors seeking riskier investments
The U.S. reports along with the Fed stance has encouraged investors to seek riskier investments elsewhere for higher returns and this has given a boost to higher-yielding such as the Australian dollar.
For most of the year, the dollar, which is considered to be a safe haven, tends to fall on upbeat economic data.
Euro
The euro EUR= hit a 15-month high at $1.5096, and it was last raised up to 0.6% at $1.5058.
ICE Futures dollar index .DXY
The ICE Futures dollar index .DXY, dropped to 74.399, a 15-month low. It was last at 74.523, which has dropped down 0.7%. This is the index that measures its performance against a basket of six currencies.
Dollar against Yen
The dollar dropped down 1.1% to 87.53 yen JPY=, after falling as low as 87.40, which is its lowest since January.
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