U.S. Dollar Lower on Durable Goods Before Fed

The Bloomberg Dollar Spot Index fell for a third day after orders for U.S. durable goods unexpectedly declined as the Federal Open Market Committee started a two-day policy meeting.

The Swedish krona tumbled to its weakest level in four years as the central bank’s decision to cut its main interest rate to zero damped demand for the Nordic currency. Russia’s ruble plunged on speculation the nation will move closer to adopting a free float. Brazil’s real gained back all of yesterday’s slide and more. Traders have pushed back bets on when the Federal Open Market Committee will raise interest rates.

Durable goods “tends to be one of your leading indicators, so I think that’s probably where a good portion of the pressure’s coming from today,” said Jennifer Vail, head of fixed income at U.S. Bank Wealth Management in Minneapolis. “If the FOMC statement more than acknowledges the recent weakness in data, then I think that could put downward pressure on the dollar.”

Bloomberg

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