if you are interested in it ,
Get free samples :sales@edabearings.com
The dollar fell against major currencies on Thursday, its biggest two-day decline in a year. The day before, the Federal Reserve hinted that interest rates would be cut as early as next month.
The Federal Reserve joined the ranks of the world's leading central banks, such as the European Central Bank and the Australian Central Bank, this week, saying that more stimulus policies are needed to sustain economic growth. This has pushed up high-yielding currencies such as New Zealand dollar NZD=, Australian dollar AUD= and Canadian dollar CAD=.
"There's no doubt that the market sees this Fed meeting as a dove shift and as a reason to sell the dollar," said Lee Ferridge, head of North American macro strategy at Dow Global Markets. "Today's theme is still dollar pressures."
The dollar fell 0.47% to 96.66 against a basket of currencies, the biggest two-day decline since February 2018. The dollar fell to a six-month low of 107.24 yen against the yen, down about 0.78%.
The sharp fall in the dollar surprised the foreign exchange market, forcing some hedge funds to sell dollars in large quantities before the Fed's policy statement was issued.
The dollar is under further pressure after the benchmark 10-year Treasury yield fell to its lowest level in two and a half years.
The general weakening of the dollar boosted investors'interest in risky currencies, with the EUR = breaking through the $1.13 threshold to a one-week high, ending up 0.62% at $1.129. The Australian dollar and the New Zealand dollar rose 0.61% and 0.80% against the US dollar, respectively.
Although the dollar appears to be weakening in the short term, some investors are sceptical about the sustainability of this trend.
I am cautious about buying and thinking that this trend will continue for "high beta coefficient currencies - Australian dollar, New Zealand dollar, Canadian dollar - and emerging market currencies". The Fed has to get worse to implement the news that markets are digesting, which is bad for high beta coefficient currencies and emerging market currencies, "Ferridge said.
PREVIOUS:Executives from several American companies will meet with Li Keqiang in Beijing NEXT:U.S. S. Stock Standard & Poor's 500 Index Refreshes Closing Record
