Low interest rates are braking the Dollar and the Yen
19 Mar
Both the Federal Reserve and the Bank of Japan have decided to postpone a increase of interest rates. The answer in the currency market is a brake for the dollar and the Yen, and a higher increase for the most punished currency last months: the pound.
The activity began past Wednesday when the meeting of the Federal Reserve ended. The Federal reserve did not change his speech, and although the weak signals of recovery, is still likely to keep interest rates between 0% and 0.25% during a long period of time.
The other central bank, among the biggest economies in the world, that has gone further with his policy of 0 interest rates, the one of Japan. Isn’t likely to keep this policy too. After his last meeting decided to double his liquidity program for the financial system to surpass $220.000 million.
The cross among the Yen and the Dollar remained steady yesterday, with a growth by 0.06% of the Japanese currency. At the same time, the dollar is paying the fears of inflation. The data about production prices in February was released yesterday with a growth by -0.6%. The analyst’s forecasts estimated this by no more than -0.2%.
The Euro hasn’t been able to take a fair advantage from the situation of the Dollar. The currency has just been able to keep the gains obtained after the aids promised to Greece, and now an Euro has a value of 1.38 Dollars.
The pound is the luckiest currency this week, investors ended to speculate low thanks to the lowest demand of unemployment subsides in the United Kingdom since 1997. The hope of recovery on British Economy o pushes the pound by 0.52% to 1.532 dollars per pound.
Related posts:
- Bernanke said that the Federal Reserve will not raise the interest rates
- The Federal Reserve is optimistic about the economy but will keep interest rates steady
- The Dollar Currency is falling again, and the Euro is now at 1.50
- The Euro is Getting Cheaper Respect the Dollar
- The Falcon of the Federal Reserve Warned that Interest Rates Should be Higher
