Dollar Falls as Traders Do Not Anticipate Fed to Drop Stimulus
The US dollar retreated today as traders anticipate that the Federal Reserve will maintain its stimulating monetary policy even after inflation accelerated. Such expectations added to pressure on the currency.
The Fed will hold its policy meeting on March 20. Specialists do not anticipate any change to the monetary policy. There were talks that the central bank may reduce stimulus as the economy improves, but it almost certainly will not happen next week.
US consumer price inflation rose 0.7 percent last month after showing no change in the preceding month. Analysts think that the rate of price growth is not high enough to make the Fed consider raising borrowing costs.
EUR/USD rose from 1.3036 to 1.3060 as of 18:13 GMT today and its daily high was at 1.3106. GBP/USD went up from 1.5079 to 1.5108, trimming the earlier advance to 1.5175. USD/JPY dipped from 96.09 to 95.52, touching the low of 95.06 intraday.
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Earlier News About the US Dollar:
- EUR/USD Plunges as US Economy Looks Better than European (2013-03-13)
- US Dollar Index Slips as Traders Look for Direction (2013-03-12)
- Another Week of Gains of US Dollar (2013-03-09)
- US Non-Farm Payrolls Much Better Than Expected, Lifting Dollar (2013-03-09)
- Dollar Loses to Euro, Jumps to Highest Since 2009 vs. Yen (2013-03-08)