Dollar falls to 10 days low

Dhaka,  Monday,   2016-09-23
Published : 23 Sep 2016, 11:43:12

Dollar falls to 10 days low

Dollar falls to 10 days low
The dollar fell to its lowest level in 10 days against a basket of major currencies on Thursday, a day after the Federal Reserve cut its longer-term interest rate expectations.

The US central bank's policy-setting committee left its target rate for overnight lending unchanged at the end of its two-day meeting on Wednesday.

It also projected a less aggressive rise in rates next year and in 2018, and cut its longer-run interest rate forecast to 2.9 per cent from 3.0 per cent.

That knocked the dollar almost across the board as investors reduced their expectations for US interest rates.

Higher interest rates make currencies more attractive to investors.

The dollar index fell to 95.048, its lowest point since Sept. 12. It rebounded slightly in afternoon trading, gaining largely against the euro and was last down 0.25 per cent at 95.426.

Earlier, the euro EUR= touched its highest level against the dollar in nearly a week at $1.1250. It was last up 0.15 per cent at $1.1202.

The dollar hit a two-week low against the Swiss franc CHF=, falling to 0.9663 franc.

Oil prices rose for the second straight day thanks in part to a surprisingly large drop in US crude inventories.

The dollar hit its lowest level against the loonie and peso in nearly two weeks and its lowest level against the rouble since Aug. 18.

The major gainer against the dollar was the Norwegian crown NOK=, which rose more than 2.0 per cent, according to a news agency.

-SRS-
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