By: Barbara Zigah
Recent comments by U.S. policymakers reinforced investor belief that key interest rates in the United States will remain at historic lows, even while other countries around the globe are hiking their key rates as the recession ends.
As reported at 8:38 a.m. (GMT) in London , the U.S. Dollar slipped versus the single currency Euro and other commodity based currencies, such as the New Zealand , Australian and Canadian Dollars.
The U.S. Dollar Index, a gauge of the greenback’s value versus other major currencies, traded at 75.332 .DXY, a decline of .2%; earlier the DXY had briefly touched on 75.211 .DXY, establishing a new 14-month trough.
The U.S. Dollar slipped broadly in individual trading as well, buoyed by better than expected earnings reports out of the U.S. , with many currencies establishing new highs versus the U.S. currency. The Euro established a new 14-month peak of $1.4967 before falling back to $1.4940, still a .1% rise on the greenback.
The New Zealand Dollar hit a new 15-month peak of $0.7487 on expectations that an interest rate hike is imminent, given stronger inflation numbers than had been originally expected.
The Australian Dollar traded at $0.9209, a .6% increase from New York trading yesterday; earlier in the day it had traded as high as $0.9228. The Canadian Dollar also established a new 15-month high versus the U.S. Dollar, trading at CAD 1.0207. Other currencies, such as the Swiss Franc, also benefited from the greenback’s decline, which established a new 15-month high at 1.0117 Francs.
U.S. Dollar Slips Broadly on Interest Rate Question
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.