Greenback sags following Fed’s caution for rate hikes
On Thursday, the evergreen buck tumbled abruptly against its main competitors right after the Fed reduced its previous projection for interest rate increases from four to two for this year. The given move generated a risk-on surge across oil as well as global equities.
The ICE US Dollar Index traded at 94.78, a one percent decrease.
On Wednesday, the Fed pumped more caution into its outlook, mentioning interest-rate hikes planned for this year. Though buck-supportive relatively high rates in America contrast with a softer European and Japanese monetary policy, market participants kept unwinding pro-greenback stance. The given move sent traders-buyers right into American stocks as well as other key stock indexes.
The major American currency traded at ¥111.26, thus demonstrating a 1.2% decrease. It appeared to be even lower compared to Wednesday’s result of ¥112.55 in New York. However, the evergreen buck traded at ¥113.80 right before the Fed officially concluded its two-day policy gathering. By the way, the currency pair dollar/yen has traded at its lowest level since February’s third week, when it managed to touch ¥111.03.