The U.S. dollar declined at a fastest pace in a month against the Japanese currency today as the credit market losses extended and the Federal Reserve probably won’t be able to raise the rates by the year’s end.
The Great Britain pound traded lower before the Bank of England’s release of the monetary policy minutes today. After the release, pound continued to slide down against both the greenback and the euro.
The Great Britain pound fell almost to its recent 2-year low against the U.S. dollar today as the member of the Bank of England monetary policy committee forecasted that the inflation will become less of a problem by the end of 2009.
The U.S. dollar declined today during the Asian session against other major currencies as the traders realized their profit, closing out long positions, and turned down possibility of the rate increase until the end of the year.
Dennis Lockhart, Federal Reserve Bank of Atlanta President, said that he prefers the current interest rate as the uncertainty regarding the growth and inflation prevails in U.S.
The Chinese yuan is currently heading for its fourth weekly decline against the U.S. dollar for the first time since the end of the peg to dollar in 2005.
The Great Britain pound rose today against the U.S. dollar for the first time in the last 10 days after reaching a new bottom level since the mid October 2006.
According to Regional Development Minister of Poland Elzbieta Bienkowska, euro should be adopted as soon as possible because zloty’s appreciation partially eliminates the value of the financial aid made by European Union and which is denominated in euro.
Both Australian and New Zealand currencies continued to fall against the U.S. dollar today as the traders’ confidence that the central banks of those countries will cut interest rates soon rose and the dollar continued its growth against euro, pound and yen.
The recent fast growth of the U.S. dollar against the euro doesn’t mean that it’s out of the long-term bearish trend. Slowing economy and the risk of rate cuts even with a rising inflation are still weighing down on dollar.