The US Dollar is trading close to a three-week low against the Pound and has weakened for a second consecutive day against the Euro after demand for the currency fell on growing speculation that the Federal Reserve will choose to maintain its monetary easing programme.
The currency was also weakened after investor confidence was boosted after China unveiled plans for its biggest economic reforms in thirty years last Friday. The proposals lessened demand for the safe haven Dollar whilst demand for the higher yielding and riskier currencies such as the Australian Dollar increased. The government’s reform plan is being touted as paving the way towards a new model for growth in the world’s second-largest economy.
Comments made last week by Federal Reserve governor nominee Janet Yellen caused investors to increase their bets that the US Central Bank will chose to maintain its $85 billion per month monetary easing programme. Investors are now turning their attention to Wednesday and the publication of the Federal Reserve’s October policy meeting minutes to get a gauge of the direction of the USA’s monetary policy.
“The market is treating the Dollar with benign neglect. Yellen was dovish and some of the structural US data isn’t fantastic. As long as equity sentiment remains as good as it is, I don’t see a reason for the Dollar to appreciate strongly,” said a foreign exchange strategist at Commerzbank AG.
The Pound softened earlier in the session after house prices in the UK weakened, falling by 2.4% this month.
The Canadian Dollar meanwhile climbed to its highest level in a month against the US Dollar as the outlook for the nation’s commodity exports improved after China revealed its economic reform plans.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6203
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7386
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0421
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6120
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3537
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9595
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7087
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5952
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6800
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0421
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4108
(Correct as of 15:10 pm GMT)
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