US currency nurses losses at 13-month minimums

On Thursday, the evergreen buck was nursing losses at 13-month minimums versus a basket of the other crucial currencies after the Fed’s fresh policy statement indicated that it might not lift interest rates again in 2017.

The US dollar index, tracking the US currency’s value versus a trade-weighted basket of six crucial currencies, reached 93.33, having hit a minimum of 93.00 overnight, which is the weakest outcome since June 2016.

This month the index has dropped approximately 2% so far and it has lost nearly 8% for the year to date.

On Wednesday, the Fed told that US inflation is still below its 2% objective even as near-term risks to the economic outlook are quite balanced. Previously, the major US bank ascertained that weakness in inflation should be regarded as transitory.

The more cautious tone on inflation powered worries that the Fed won’t hurry to lift rates before the end of 2017.

The greenback stood still versus the Japanese yen, with USD/JPY sticking to 111.23, which is not far from the five-and-a-half week minimum of 110.61 hit on Monday.

As for the common currency, it was a bit lower with EUR/USD demonstrating 1.1720, having soared to maximums of 1.1777 overnight, which is the strongest outcome since January 2015.

Similar

25.11.2022 12:40 How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

14.11.2022 10:00 Is Inflation Defeated?

Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.

07.11.2022 09:30 Who Will Rule the US?

The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.