Fed Signals Low Rates for Some Time

The dollar dropped for a fifth day against most major peers as the Federal Reserve said it will keep interest rates at almost zero for a “considerable time” after its bond-purchasing program ends.

The euro rose against the U.S. currency as Spain’s forecasts for economic growth boosted speculation the European Central Bank will refrain from adding stimulus next week. Norway’s krone climbed against all 16 of its top counterparts as retail sales unexpectedly increased in March. The greenback declined versus the yen after a report showed U.S. economic growth stalled in the first quarter amid harsh winter weather.

“The Fed overall is still very dovish as an institution and kept its forward guidance on the fed funds rate unchanged,” said Brian Daingerfield, currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities Inc. in Stamford, Connecticut. “After the Fed made a myriad of changes in their March statement, everyone always expected the April statement would be a lot less exciting.”

Bloomberg

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