Greenback lower on Fed decision

The US dollar was hurt by the decision of the US Federal Reserve to keep interest rates at 5.25 percent for at least another month. While the decision, which was expected, did not include any language indicating that rate declines are coming anytime soon. The US currency dropped 0.1 percent to $1.2100 versus the Swiss franc, while it fell 0.3 percent against sterling, to $1.9670 and was 0.4 percent lower to $1.3370 in relation to the euro. The greenback did, however, add 0.2 percent to ¥117.50 against the yen.

The yen was down 0.4 percent versus both the euro and sterling, to ¥156.75 and ¥230.80 respectively. The declines were blamed on strong sessions for the Asian equities markets, which tended to lower the risk aversion which had been driving the yen’s advances.

Sterling weakened on after the minutes of the most recent meeting of the Bank of England’s Monetary Policy committee were released showing that only one member of the committee voted to cut interest rates at that time. The other members voted to keep rates at 5.25 percent. With the release of the minutes, the UK currency dropped 0.2 percent to £0.6801 versus the euro.

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