Dollar weakened by the Fed in forex

Saturday, November 6, 2010

U.S. Dollar further weakens Fed announcement

Following the announcement yesterday of the Federal Reserve confirms speculation that other measures would be obtained quantitative easing, the U.S. dollar generalesen fell forex terms. The dollar continued to weaken against the euro common currency and Australian dollar. With whetted the appetite for risk, investors shunned the U.S. dollar weakened mass support for these high-risk and high-yielding currencies. As reported at 2:52 PM (JST) in Tokyo, the dollar traded lower against the euro $ 1.4200, down from 10 months right after the announcement before recovering slightly to $ 1.4139. The Australian dollar, with a strong peg to the dollar in forex trading these days, was trading at $ 1.0060 on the announcement of the Fed, then retreated to $ 1.0059. The U.S. dollar also traded 0.3% lower against the Japanese yen, slipping just under 81.00 yen and 79.75 yen short of the record low. Traders remain wary of a possible intervention in the yen, despite the promise of the G-20. Sterling also rose against the dollar, reaching a maximum of several months of $ 1.6180 to the Fed announcement before retreating to $ 1.6126. The Bank of England is meeting today and a key decision about whether to implement any scheme of quantitative easing soon. U.S. Dollar Index, which measures the value of the U.S. currency against a weighted basket of currencies, fell 0.1% to 76.31. DXY for forex investment