Forex News and Rumors – Afternoon Update

Dollar Falls on Expected Fed Rate Cut

Investors drove the dollar down to $1.37 per euro on speculation that the Federal Reserve will cut interest rates tomorrow at its scheduled policy meeting. Some analysts are predicting the rate will be cut by 75 basis points to an all-time low of just 0.25 percent. More

Peso Gains at Dollar’s Expense

With a deep cut to US lending rates expected tomorrow, investors turned to the Mexican peso as one of the few high-yielding assets still available. More

Ruble Devalued For the Second Time in a Week

Russia’s central bank – Bank Rossii – devalued the ruble for the second time in the past week after spending more than $160 billion USD trying to prop up the ruble in the face of slumping oil prices. The ruble fell almost 2 percent to a four-year low of 37.6772 per euro after the Bank Rossii widened the trading band in which the ruble trades against a basket of dollars and euros. More

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