Dollar weakens as Fed plays down interest rate expectations The dollar slipped to a five-month low, according to the Bloomberg Dollar Spot Index, which tracks its performance against ten major rivals. EUR/USD rose to 1.3871 overnight, its highest since March 24th, while USD/JPY touched 101.64 after bouncing up to 102.16 yesterday. The greenback was under pressure after minutes from the Fed’s FOMC meeting in March showed policymakers played down forecasts on interest rates. US stocks rallied the most in a month, with the S&P 500 closing 1.72 percent higher. Commodity-linked currencies continued to surge higher as the dollar weakened. The Aussie jumped above key resistance at 94 cents to the US dollar after data showed the economy added more jobs than forecast and the jobless rate plunged to 5.8 percent from 6. Initially, riskier currencies like the Aussie and kiwi were hit by softer than expected trade numbers from China. Imports and exports unexpectedly dropped in China, raising some concerns over the strong demand for commodities and helped boost the Japanese yen. EUR/JPY slipped to 140.74 from a high of 141.55 and AUD/JPY fell to 95.62. The kiwi extended its rise against the buck, hitting 0.8746. Today, Britain’s central bank announces its interest rate decision and asset purchases target at 1300 CET. Good day
Posted on: Thu, 10 Apr 2014 07:26:09 +0000