Dollar Jumps as Fed Refrains from QE
The US dollar jumped, reaching the highest level in almost a year against the Japanese yen, after the Federal Reserve refrained from additional quantitative easing and spoke about economic recovery.
The Federal Open Market Committee kept the main interest rate unchanged near zero and refrained from adding stimulus for the US economy. Moreover, the FOMC was relatively optimistic about the US economy:
Information received since the Federal Open Market Committee met in January suggests that the economy has been expanding moderately. Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated.
Earlier, a report showed that US retail sales advanced 1.1 percent. The reading was in line with forecasts.
EUR/USD was down from 1.3081 to 1.3071 and GBP/USD fell from 1.5706 to 1.5687 as of 4:31 GMT today. USD/JPY went up from 82.88 to 83.14 and reached the intraday high of 83.21 — the highest since April 18.
If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.
Earlier News About the US Dollar:
- US Dollar Mixed, But Mostly Higher (2012-03-12)
- US Dollar Rises as Quantitative Easing Becomes Less Likely (2012-03-09)
- US Dollar Index Gains on European Concerns (2012-03-07)
- Uncertainty Sends US Dollar Higher as Risk Haven (2012-03-06)
- Risk Aversion Helps US Dollar (2012-03-02)