The US Dollar has weakened against the majority of its most traded peers including the Pound and Australian Dollar after speculation over an imminent reduction to the Federal Reserve’s monetary easing programme lessened.
The currency was also weighed down by news that the People’s Bank of China will be removing the limits on its lending rates. Against the Yen the Dollar declined in the run up to the elections for the Japanese parliament’s upper house. Also weighing on the Dollar was the decision by the city of Detroit to file for Bankruptcy. Such an application is the biggest in US history.
Fed Chairman Ben Bernanke told Congress on Thursday that it was too early to make a judgment as to taper the Central Bank’s asset purchasing programme.
“After Bernanke’s comments this week, it’s clear that the door is wide open for a number of different scenarios, including increasing asset purchases if that becomes necessary, the idea for a September taper is still tentatively on the table, but there is a risk that some softness in US data might ultimately push that back to around December,” said Omer Esiner, chief market analyst in Washington.
Major events next week for the US Dollar
Monday, July 22 – USD Existing Home Sales, USD Activity Index.
Tuesday, July 23 – USD House Price Index.
Wednesday, July 24 – USD Prelim PMI, USD New Home Sales.
Thursday, July 25 – USD Jobless Claims, Durable Goods Orders
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6561 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7631 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.090 <
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.2766 <
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0384
(Correct as of 15:30 pm GMT)
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