The dollar hovered near a two-week high against a basket of major currencies on Thursday, after extending gains when the Federal Reserve mollified jumpy markets and kept its massive bond-buying stimulus in place.
Some investors had been taking profits on very bearish dollar positions leading up to the Oct 29-30 policy meeting. They continued to do so after the Fed’s comments suggested it was less alarmed over the state of the economy than some had anticipated.
The U.S. central bank said it would keep buying $85 billion in assets per month and sounded only slightly less optimistic about growth. However, it dropped a phrase expressing concern about a run-up in borrowing costs, suggesting it was comfortable with interest rates at their current level.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.