Dollar falls after policy meetings

Dhaka,  Monday,   2016-09-22
Published : 22 Sep 2016, 15:46:03

Dollar falls after policy meetings

Dollar falls after policy meetings
The dollar stumbled to a near 4-week low against the yen on Thursday, after the US Federal Reserve kept monetary policy steady.

While the Fed strongly signalled that it could still tighten monetary policy by the end of the year, policy makers cut the number of rate increases they expect this year to one from two.

They also forecast a less aggressive rise in interest rates next year and in 2018, according to the median projection of forecasts released with its post-meeting statement.

The BOJ made an abrupt shift on Wednesday to targeting yields on government bonds to achieve its elusive inflation target after years of massive money printing failed to jolt the economy out of decades-long stagnation.

The dollar touched a low of 100.10 yen at one point, its weakest since Aug. 26. The greenback later pared some losses and was last trading at 100.25 yen, down 0.1 per cent on the day.

The dollar index, which measures the greenback's value against a basket of six major currencies, touched a low of 95.373 at one point on Thursday, its weakest level since Sept. 16.

The euro edged up 0.2 per cent to $1.1202, having pulled up from Wednesday's trough of $1.1123.

The New Zealand dollar edged lower after the Reserve Bank of New Zealand (RBNZ) left the door wide open for another interest rate cut this year.

The RBNZ kept its benchmark interest rate unchanged at 2.0 per cent on Thursday but reiterated that further easing will be required.

The New Zealand dollar fell 0.2 per cent to $0.7333. Earlier on Thursday it had risen to as high as $0.7374, its highest level in nearly 2 weeks, according to a news agency report.

-SRS-
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