The US dollar continues to hold its position of the main Forex news headliner as the FOMC hinted that they consider the inflationary fears are unjustified, offering no plans for credit policy tightening.
The greenback fell for the seventh straight day against the euro today and for the first day since Thursday against the pound. Nevertheless, it managed to rise against the Japanese yen and the Canadian dollar as the former still suffers from the negative rating outlook announced today by S&P; the latter is believed to be more affected by the “moderate” US recovery rate than the US itself.
Federal Open Market Committee that manages the federal funds rate in the United States voiced four main points in their statement that was released at 16:30 GMT today:
The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.
EUR/USD rallied from 1.4647 to 1.4729 as of 18:43 GMT, it touched 1.4743 level earlier — the pair’s maximum since early December 2009. GBP/USD went up from 1.6484 to 1.6558, while USD/JPY rose from 81.59 to 82.25.
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