USD Hits 18 Month Low a Week After Cautious FOMC

May 3, 2016 Share Print 0

As the U.S. dollar fell to its lowest since January 2015, currency experts told CNBC the currency’s decline had further to run.

The greenback has fallen since the start of last week and traded at 92.26 against a basket of major currencies on Tuesday. This was the dollar index’s lowest level since the start of last year.

Currencies against which the dollar has posted notable declines include the Japanese yen. The dollar fell below 106 yen on Tuesday after the Bank of Japan surprised some currency traders by introducing no further stimulus measures at its meeting last week.

Analysts at Societe Generale and BBH told CNBC via email the dollar rout had further to run.

Marc Chandler, head of currency strategy at BBH, forecast the dollar would bottom in the coming weeks, reaching roughly $1.18 against the euro and 103 yen.

Kit Juckes, a top strategist at Societe Generale, said the dollar might approach 100 yen, but would need to do so in the next few weeks. He said euro-dollar could near or just fall through $1.20.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.