U.S. Dollar Eases after Warning From Fed Officials

The dollar declined for the first time in three days after Federal Reserve officials said a worldwide economic slowdown may delay interest-rate increases, damping demand for the U.S. currency.

The Bloomberg Dollar Spot Index has lost 1.4 percent since reaching the highest since June 2010 on Oct. 3. Brazil’s real led currency gains as a voter poll indicated that opposition candidate Aecio Neves would win in the election runoff this month. Australia’s currency climbed from almost a four-year low as its biggest trading partner China reported better-than-forecast export growth and an unexpected pick-up in imports. China’s yuan rose as the central bank raised the currency’s reference rate.

“Some of the comments we’ve been seeing from Fed officials have a cautious tone,” Eric Viloria, a strategist at Wells Fargo & Co. in New York, said in a phone interview. “We’d expect some consolidations, if not corrections, of the dollar strength.”

Bloomberg

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.