Investing.com – The greenback rallied on Thursday as it slowly recovered from an unexpected dovish stance from the Federal Reserve.
The , which measures the greenback’s strength against a basket of six major currencies, rallied 0.6% to 95.755 as of 10:38 AM ET (14:38 GMT).
The Fed left rates on Wednesday, but cut its outlook for U.S. economic growth over the next year due to concerns about a slowing economy, even amid a strong labor market.
Policymakers lowered their predictions of a rate increase in 2019, signaling that the Fed is unlikely to change its patient strategy anytime soon.
The central bank also indicated that it would end its policy of balance sheet reduction in the later half of the year.
Meanwhile, the number of people who filed new applications for assistance fell, indicating that conditions in the labor market remain aren’t weakening even as the number of new jobs fell in February.
The dollar rose against the safe-haven yen, with rising 0.05% to 111.46.
The pound was lower after the Bank of England kept rates unchanged, ignoring upbeat economic data out of caution over the U.K.’s plan to leave the European Union.
Prime Minister Theresa May is expected to ask Brussels for a Brexit deadline extension of three months later Thursday but it’s unclear if the bloc will grant her wish.
slipped 0.5% to 1.3126.
Elsewhere, was up 0.2% at 0.7125 while gained 0.1% to 0.6891. The loonie fell, with rising 0.4% to 1.3355 and inched down 0.3% to 1.1376.
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.
Latest posts by investing.com (see all)
- Forex – Australian Dollar Steady After RBA Decision - June 4, 2019
- Yuan Watchers Say 7 Is No Longer a Sticking Point for China - June 4, 2019
- Fresh Losses Coming for Australian Dollar, Strategists Say - June 4, 2019