The U.S. dollar rose today against the Japanese yen, erasing its yesterday losses, and against the Great Britain pound after the Federal Reserve confirmed its intention to keep the interest rates near zero and reported about the stable inflation outlook and the improving labor market conditions; the greenback retreated versus the euro.
The officials informed about the increasing household spending, though the credit to households remains tight. The demand from overseas and lower labor costs resulted in the jump of the corporate profits last quarter. The U.S. economic growth for almost a year hasn’t caused the inflation to rise or the unemployment rate to fall below 9.7 percent.
The Federal Open Market Committee stated:
With substantial resource slack continuing to restrain cost pressures and longer term inflation expectations stable, inflation is likely to be subdued for some time. Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
USD/JPY traded at about 94.04 as of 20:56 GMT today after it opened at 93.26. GBP/USD traded near 1.5208 after opening at 1.5263. EUR/USD traded at 1.3219, rising from its opening price of 1.3173.
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