Wednesday, 30 September 2009

forex news - US Dollar vs. Aggressive Rate Cut

forex news - US Dollar vs. Aggressive Rate Cut

The US dollar dropped throughout the majors on Tuesday since the Federal Reserve cut the fed funds rate more than anticipated. It seems that interest rates are going to remain low for a while. Previous to the statement, the markets was expecting a 50bp cut, but the Fed brought a 75bp decrease to get the fed funds rate downward to a objective range of 0.0 % - 0.25 %. This exceptional move led the US dollar to go through its largest five-day fall since the start of the euro in 1999, as said by Bloomberg News, particularly as the Fed explained they might be thinking about introducing quantitative loosening by acquiring longer-term Treasury securities.

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