U.s. dollar stepped back in Asian trading session Thursday (07/28/2016) this morning after the US Federal Reserve interest rate rise signals stop in the near future as a result of the FOMC meetings which have been held since two days ago. The Yen's strength in picking any expectations that Japan's Central Bank will not launch a stimulus by previous investors.
Netanyahu's Belief Is Not Enough For The FED
After the FOMC yesterday, the FED said that it was already not too worrisome possibility of shaking against the US economy, and pointed out that a rise in interest rates in September were still possible.
"Short-term risks to the economic outlook has faded," said policy makers of The Fed. However, an increase in the "mood" of the central bank that apparently is not enough to establish the expectations will increase interest rates soon.
The dollar index, which measures the strength of the US dollar against six major currencies, stood at 96,591, below the high level 97,530 on the range last night. Earlier this week, the dollar index climbed as high as 97,569, the highest since March.
Euro surges to form a 1 percent against the U.S. dollar, from low level night became 1.0960 1.0725 this morning. Meanwhile against the Yen, the dollar slipped 0.3 percent to 104.91 yen.
Most Likely December
"If the US economy continues to grow despite the high increase in the problems and gaps in the labour market will fade, and we estimate that the Fed will still endeavour to increase interest rates once more before the end of the year especially in December," said Rabobank strategist cited by Reuters.
"However, the rise in interest rates in December we mean is to record, the risks taken into account by the FOMC not go up substantially in the year 2016," continued the Rabobank.
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