Dollar Further Down on Interest Rate Expectations

After Federal Reserve policy makers affirmations suggesting that interest rates will remain low for a long period of time in the United States, the greenback declined to the lowest levels in 2009 versus the euro, and also lost versus most of the main traded currencies.
The U.S. currency declined today after several positive news influenced traders towards higher-yielding options after Chinese exports shrank less than forecasts and Intel Corp. posted higher-than-expected sales adding signals that economic conditions are improving globally, helping stocks and commodities to climb further as well. The Canadian dollar also approached closer to parity with its U.S. counterpart as a rise in crude oil rates and optimism in the North American country helped the loonie to get closer to the greenback, and equality can be expected for the next weeks. The Norwegian krone and the South African rand were the best performers versus the greenback this Wednesday due the optimism in foreign-exchange markets.
According to the most part of traders, a weaker dollar for the long term is already a consensus. The dovish comments coming from the Federal Reserve killed the last hopes of a hawkish initiative from the U.S. government towards its currency, and currencies like the euro, the yen, and emergent-market options are likely to gain further versus the greenback until the end of the year, at least.
USD/CAD traded at 1.0285 as of 11:40 GMT from a previous rate of 1.0337 yesterday. EUR/USD traded at 1.4885 from 1.4837.

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