Federal Reserve — News Archive

The stock market crashed this week and the US dollar followed. While the greenback recovered somewhat by the weekend, the US currency ended the week among losers.

The US dollar is continuing to post incredible gains against several currencies on Thursday after an impressive week of domestic economic data and global developments. The greenback will now look ahead to the September jobs report on Friday, which is expected to come in strong.

The Japanese yen was relatively strong today, gaining on riskier commodity currencies. Market analysts explained the currency’s strength by risk aversion caused by anticipation of higher interest rates from the Federal Reserve. If that is the case, it it surprising to see that the yen gained on the US dollar as well.

The US dollar ended the trading week strong thanks to the hawkish policy statement of the Federal Reserve. But the strongest currency was the Canadian dollar due to the better-than-expected economic growth. The euro was weak, dragged down by the Italian budget.

The Chinese yuan is gaining at the end of the trading week despite several bearish forecasts pertaining to the short-term outlook of the national economy and the currency. This comes one day after the yuan extended its losing streak to six months, the longest in 26 years, after shedding 4% against the greenback in the third quarter.

The Canadian dollar is plunging midweek after the Federal Reserve raised interest rates and on growing uncertainty regarding a new North American Free Trade Agreement (NAFTA). Without any upcoming Canadian economic events, traders will look ahead to key US numbers later this week.

The US dollar was little changed today, though rose versus most European currencies as markets were waiting for the monetary policy decision of the Federal Reserve and accompanying forecasts that should reveal Fed’s outlook for the future.

The Australian dollar rallied intraday during the current trading session but failed to maintain gains and is trading near the opening level now.

The US dollar erased its early gains and extended its two-week losing skid on Monday. As investors braced for the Federal Reserve’s two-day policy meeting and read reports that China canceled trade talks with the US, the greenback dipped against a basket of currencies.

The US dollar is rallying against its major counterparts at the end of the trading week following a better-than-expected August jobs report. The bullish economic report will likely give further ammunition to the Federal Reserve to raise interest rates at its next Federal Open Market Committee (FOMC) policy meeting later this month, a dollar-positive move.