By: Barbara Zigah
With the conclusion of the 2-day meeting of the Federal Reserve FOMC yesterday, currency investors sold off their low-yielding U.S. Dollar with the belief that the Federal Reserve Bank has no intention of raising interest rates any time in the near future. A recent survey of 16 of the 18 primary dealers within the Federal Reserve’s network supported investor belief; the poll showed that more than half of the respondents believed that there would be no interest rate hike until after the mid-way point of 2010, with the remainder of the respondents believing that it will be at least a year, or even two years, before the Fed raises rates.
As reported at 2:31 p.m. (JST) in Tokyo, the U.S. Dollar traded at 90.78 Yen, a fall of .6%; earlier in the day it had traded as high at 91.63 Yen on the EBS platform. The U.S. Dollar also slipped against the higher-yielding New Zealand and Australian Dollars, trading at $0.7196 versus the NZD, a loss of .3%, and $0.8704 against the AUD, a decline of .4%. The New Zealand Dollar has benefited this week from strong economic data which shows that the country has successfully pulled out of the recession, giving rise to investors’ belief that the central bank of New Zealand will begin to raise interest rates soon.
U.S. Dollar Continues Slide following Federal Reserve Meeting
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.