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The dollar fell to 4-month lows

The dollar fell to 4-month lows

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Erik Holm - Head of media

On Thursday, the US dollar fluctuated near four-month lows, having suffered the largest losses in a few weeks after the Federal Reserve forecast to maintain current interest rates in 2020. Investors were cautious in anticipation of the deadline for the introduction of duties, which will come this Sunday, as well as before the ECB meeting and election in the UK.

The US dollar fell to a one-month low against the euro after the Fed meeting and by 9:30 London time, it rose slightly above this level to 1.1126. The US dollar index against a basket of major-currencies recovered slightly after a four-month low but remained weak at 97.09. The US currency rose to 108.61 against yen.

Fed Chairman Jerome Powell noted that the economic outlook is favorable for the US, and said that raising rates would require a substantial and steady increase in inflation. New economic forecasts showed that 13 out of 17 Fed politicians do not expect interest rates to change until at least 2021.

Today, US President Donald Trump is expected to meet with leading trading advisers to discuss $160 billion in Chinese goods duties scheduled for December 15. The decision to impose fees could excite financial markets and disrupt negotiations between the US and China to end the 17-month trade war.