Sponsored Links
The dollar saw modest strength versus other major currencies on Wednesday after the Federal Reserve announced it would be keeping interest rates at near zero for an extended period amid stubborn unemployment.
Even though the central bank is not ready to unwind measures to prop up the fragile economy, the Fed sounded a slightly more hopeful tone than last month, giving the dollar some added support.
"Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the deterioration in the labor market is abating,'' the Fed said.
The Fed said it would end its program to buy mortgage-backed securities at the end of March.
Kansas City Federal Reserve Bank President Thomas Hoenig was the lone dissenting vote.
The buck added to its 5-month highs versus the euro, rising to 1.4002. At the same time, the buck moved toward a monthly high near C$1.0700 against its Canadian counterpart.
Versus the yen, which has become the more favored safe haven play, the dollar snapped out of its doldrums, rising to Y90 from a monthly low of 89.12.
Meanwhile, the dollar continued its run of choppy trading versus the sterling, improving to 1.6170 from an early low near 1.6250.
Traders also assessed another round of data on the US housing situation. New home sales unexpectedly dropped to a nine-month low December, official data revealed Wednesday.
Although the Commerce Department report also showed a significant monthly increase in new home prices, the second consecutive drop in overall sales added to mounting evidence that the government-aided recovery of the housing sector has petered out.
Overseas, the Bank of Japan (BOJ) in its monthly report on Wednesday maintained its stance that the nation's economy is picking up, but does not yet have sufficient momentum to support a self-sustaining recovery in domestic demand.
In Europe, German consumer prices rose less than forecast in January compared to last year, signaling the European Central Bank has a free hand to keep rates low without worrying about inflation.
0 komentar:
Post a Comment