The US Dollar struggled against the common currency Euro, Pound Sterling and Aussie Dollar after the Federal Reserve Bank failed to offer investors any real clarity regarding the timing of its next interest rate adjustment. Along with the diminished probability of a 2016 rate increase, according the Fed statement, future rate hikes that had been previously promised have now been reconsidered and the numbers revised down for both 2017 and 2018. It was noted that three of the Fed’s policymakers, that is those voting on the Federal Open Market Committee, have committed their vote to a 2016 rate hike.
As reported at 10:45 am (BST) in London, the EUR/USD was trading at $1.1232, up 0.37%; the pair has ranged from a session low of $1.1181 to a peak of $1.1247. The GBP/USD was up 0.19% at $1.3062, off today’s low of $1.3023 and heading toward the peak of $1.3086. The AUD/USD was higher at $0.7667, a gain of 0.437%.
Yen Pauses in Relentless Rise
At the same time, the greenback was able to recoup some of its earlier gains against the Japanese Yen with the Yen taking a pause from its steady rise in the wake of the realization that the Bank of Japan has little firepower left to depreciate the currency. The USD/JPY was up 0.25% to trade at 100.65 Yen; the pair ranged from a trough of 100.07 Yen to a peak of 100.86 Yen.