Forex – Dollar Drops After 4-month High; Fed Keeps Rates Unchanged

© Reuters. The dollar slipped against the other major Asian currencies – The dollar slipped against the other major Asian currencies on Thursday morning after it jumped to this year’s new high while the Federal Reserve kept the interest rate unchanged. Australia’s rosy trade balance data also boosted the Aussie.

The that tracks the greenback against a basket of six major currencies last stood at 92.39, down 0.22% at 11:15PM ET (03:15 GMT). The greenback reached this year’s new high overnight at 92.66, then lost its steam in the morning.

Meanwhile, the Fed kept the interest rate unchanged at 1.5% to 1.75%, as widely expected. It also said inflation is moving higher, close to its target.

The pair gained 0.39% at 0.7523. Australia’s March trade balance data rose to A$1.53 billion versus A$0.65 billion expected – the largest surplus since May 2017. The Aussie was sent higher by the soaring trade balance data. The Reserve Bank of Australia (RBA) will be giving their Monetary Policy Statement on Friday, which market expects the interest rate will be kept unchanged at 1.5%. The RBA’s dovish tone may weigh on the Aussie.

The pair eased 0.18% to 109.64. Japan’s market closed for Constitution Day.

In China, the People’s Bank of China set the set the reference rate for the yuan against the dollar, the mid-point from which the currency is allowed to trade, at 6.3732 versus the previous day’s 6.3670. The pair edged 0.08% to trade at 6.3663.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.