US Dollar Recovers Ground Lost After Federal Reserve Announcement

US dollar is mostly higher today, gaining ground in the wake of losses following Wednesday’s Federal Reserve announcement. The greenback has recovered some of its losses, particularly against the euro, which it has sent back below the 1.3600 mark.

US dollar is up pretty much across the board, thanks to some reflection by Forex traders, and a closer look at economic fundamentals. The greenback took a bit of a beating after Fed Chair Janet Yellen announced on Wednesday that the FOMC isn’t worried about inflation. While the slow taper of asset purchases continues, many had hoped that the economic situation would prompt the Fed to announce higher interest rates sooner rather than later. When this didn’t happen, the dollar took a bit of a dive.
The greenback is recovering today, however, moving higher against its major counterparts. The US economy once again looks attractive when compared to the eurozone economy, even though there was some good news out of the euro area.
At 12:31 GMT the US dollar index is higher, moving up to 80.3970 from the open at 80.3080. EUR/USD is moving lower, dropping to 1.3575 from the open at 1.3608. GBP/USD is also lower, heading down to 1.7031 from the open at 1.7040. USD/JPY is higher, moving up to 102.0630 from the open at 101.9410.

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