The US Dollar has fallen sharply as Wednesday saw a large sell off of the currency by traders.
The reversal in direction of the Dollar has been caused by an increase in demand for riskier assets and has seen the currency make steep falls against the Japanese Yen and the majority of its most traded peers.
“Someone started the ball rolling with a large dollar sell order across the board and then just triggered stops in dollar/yen, euro/dollar, the Australian dollar, the New Zealand dollar … We had many stops on our board which flew through,” a London-based trader said.
The Dollar has been weakened by increasing speculation in the markets that the Federal Reserve’s aggressive monetary stimulus programmes could be slowed as the US economy continues to show signs of improvement. The recent run of better-than-expected U.S. economic data also supports notions the Fed could lighten up on its big monthly bond-buying program.
Against the Euro the Dollar fell by 0.7% and against the Pound it weakened by 0.6%.
Analysts said the euro was also supported by data showing a bigger-than-expected rise in German inflation, although the currency’s gains might be temporary as the inflation data would not necessarily reduce the likelihood of further monetary easing by the European Central Bank.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6642
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7764
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0450
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.721
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0406
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5054
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.2879
(Correct as of 14:45pm GMT)
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