The US dollar slipped today versus the euro after the US Federal Reserve maintained its quantitative easing program, signaling that the US economy hasn’t quite recovered yet and still requires stimulus.
Some economists had hopes that the Fed would raise the interest rates as the economy of the US looked for them healthy enough to survive without unprecedented stimulus measures. Such hopes hadn’t come to pass as the Federal Open Market Committee left the interest rates unchanged near zero yesterday and said in its statement that it “continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period”.
EUR/USD rose today from 1.3712 to 1.3735 as of 12:04 GMT after it earlier dropped to 1.3637.
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