Stock Market Watch

Forex Market Update: U.S. Dollar at 5-Week Low

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The U.S. dollar remained at a 5-week low on Friday amid reports that the Federal Reserve in its next FOMC, which is scheduled for next week, will reiterate its plans to keep interest rates at record low levels for a long time.

The dollar had strengthened against major rivals last month amid speculation that the Fed might start easing its bond buying program before the end of this year. However, in recent weeks, statement from Fed officials have eased concerns over an early end to the central bank’s $85 billion a month asset purchase program.

On Friday, the dollar remained under pressure after the Wall Street Journal reported that the Federal Reserve may debate twisting its forward guidance message in order to signal that interest rates will not be raised for a considerable period.

Speaking to Reuters, Niels Christensen, Currency Strategist at Nordea in Copenhagen, said that we could see more squaring of long dollar positions ahead of the Fed meeting keeping the downward pressure on the dollar.

The dollar was down 0.4% against a basket of currencies. The weakness in the dollar meant that the euro was trading at a five-week high. At last check, the euro was trading at 1.3296 against the greenback. The Japanese yen also strengthened against the dollar. At last check, the dollar was down 1.08% to 98.200 yen. Against the Aussie dollar, the U.S. dollar was last trading 0.12% lower, while against the pound, the greenback was last trading 0.19% lower.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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