U.S. Dollar holds steady following FOMC meeting

25 June 2009 2:46:00 AM
By: Barbara Zigah
As reported at 9:25 a.m. (BST) in London, the U.S. Dollar remained relatively flat in currency trading following yesterday’s intimation by the Federal Reserve Bank that the current program of quantitative easing would not be changed in the near term. According to one currency strategist in London, that is a mildly positive sign for the U.S. Dollar. The U.S. Dollar Index rose .1% to trade at 80.610 .DXY, recovering from a 2-week low touched on briefly in yesterday’s trading. Versus the Euro, the U.S. Dollar traded at $1.3940 slightly off of $1.4139, a 2-week high hit yesterday before the Federal Reserve meeting. Against the Swiss Franc, the U.S. Dollar lost .2% to trade at 1.0955 Francs, hovering close to 1.0629 Francs, a 3-week low hit yesterday. The Swiss Franc also moved up against the Euro, reversing some of yesterday’s losses, to trade at 1.5278 Francs. Some analysts speculate that the Euro is under pressure because the European Central Bank is playing late catch-up versus other central banks with measures aimed at quantitative easing. A reading of the Euro Zone industrial order to be announced this morning is expected to be unchanged from last month and on track to show a 32.3% loss on the year.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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