The US dollar declined versus the euro on Wednesday as the US Federal Reserve decided to keep its low interest and maintains their bond purchasing program. According to the Federal Reserve US economic growth has been sluggish for which the decision of keeping low interests rates were taken.
The dollar index DXY which measure the greenback’s performance versus its major six rivals declined to 77.776 as compared to 77.973on Tuesday’s late trading session.
The Euro advanced to 1.3703 against the US dollar as compared to $1.3682 on Tuesday. Against the Japanese Yen the US dollar traded at 82.26 as compared to 82.23 on Tuesday’s late trading session.
Global Head of Currency Marc Chandler form Brown Brothers Harriman commented, “The continuation of Treasury purchases, coupled with the modification of the labor market assessment triggered a quick push lower on the dollar.
The greenback did moved up for a brief movement in start of US trading session on Wednesday as US homes sales increased more than expected. But later on selling pressure increased in the US dollar on decrease of treasury yield as President Obama has proposed to stop domestic discretionary spending.
The British Pound increased by 0.8 percent to 1.5912 versus the US dollar as per latest Bank of England’s meeting six members voted for unchanged monetary policy. Two of the members voted to increase the bank rate by 25 basis points while Adam Posen proposed to increase the asset purchase program by 50 billion pounds to 250 billion pounds.
According to experts Pound Sterling trading is more like a roller coaster and high volatile changes could be expected.
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Daily forex trading news written by Rehan from DailyForexTrade.com