Saturday , 21 April 2018

Home » RESOURCES » MARKET » US dollar nurses huge losses as Fed strikes more dovish tone

US dollar nurses huge losses as Fed strikes more dovish tone

The US dollar sustained large losses on Tuesday, experiencing its biggest one-day drop versus the euro in six years, as the Federal Reserve rendered a more dovish tone than anticipated on interest rates while emphasizing the currency’s effect on American exports.

The central bank removed the word “patient” from its statement regarding interest rate hikes. However, it downgraded its outlooks on the US economy and inflation, as well as lowered its rate projection.

Versus the Japanese yen, the greenback slipped to ¥119.29 overnight, its weakest since February 27. The currency also ended at $1.1062 per common currency.

Even after the selloff, the dollar has created “a solid base against the yen because people are buying on dips,” said Kaneo Ogino, Director at Global-info Co.

Fed Chair Janet Yellen said the firm greenback was compressing inflation at least on a transitory basis, implying a tacit admission the soaring dollar had stagnated its policy plan.
The material has been provided by InstaForex Company – www.instaforex.com

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

US dollar nurses huge losses as Fed strikes more dovish tone Reviewed by on . The US dollar sustained large losses on Tuesday, experiencing its biggest one-day drop versus the euro in six years, as the Federal Reserve rendered a more dovi The US dollar sustained large losses on Tuesday, experiencing its biggest one-day drop versus the euro in six years, as the Federal Reserve rendered a more dovi Rating:
scroll to top