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


© Reuters. The dollar slipped against the other major Asian currencies

Investing.com – 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.

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