Federal Reserve encourages strengthening dollar
The US currency strengthened its position against all but one of its 16 major peers, reports Bloomberg.Forex traders
saw the dollar move forward against the euro today (April 4th) as the prospect of improvement in US employment data discouraged the Federal Reserve from undertaking any monetary accommodation.
Elsewhere the euro continued to struggle, reaching its lowest point for a week as the European Central Bank prepares to discuss policy changes and evidence of slowing growth and renewed debt concerns trouble the market.
The dollar moved up by 0.3 per cent to hit $1.3189 per euro this morning, while the European common currency dropped 0.5 per cent to 109.09 yen.
Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London, explained that he expects the euro to continue to fall.
"The US is much further along in the recovery process than the euro area, and the Fed has confirmed this," he added.
European stocks also moved back, with the Stoxx Europe 600 Index falling 0.3 per cent to 263.42.Posted by Greg Secker
- Knowledge to Action News
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