U.S. Dollar Falls After Fed

The U.S. dollar wallowed at its lowest in nearly two weeks against a basket of major currencies early on Thursday, having beat a hasty retreat after the Federal Reserve signaled that interest rates will stay low for a while yet.

New projections suggested the Fed saw rates rising a bit more in 2015 and 2016 than it previously forecast, but officials lowered their long-term rate target. The Fed also sounded comfortable about the inflation outlook despite recent signs of a pick-up in price pressure.

As a result, U.S. Treasury yields fell, with the benchmark 10-year rate dropping back below 2.6 percent.  The dollar index unwound all of the gains made in the lead-up to the Fed meeting. It slipped 0.3 percent and fell as far as 80.365, a low last seen on June 9.

CNBC

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.