Dollar eyes two-month low versus euro

By Jeff Davies

Disturbance hit the markets with more strength on Thursday after yesterday’s meeting of the United States Federal Reserve. The dollar weakened substantially across the board as the central bank downgraded its outlook on economic growth and the path of the rise in borrowing costs.

On the other hand, stocks were plunging on a global scale as the decision by policymakers led by Chair Jerome Powell to lift the target interest range by 25 basis points spurred risk aversion.

The greenback’s descent helped precious metals, but oil nosedived against the backdrop of fears for the world’s economy, Brexit unknowns and trade friction. The euro jumped 0.9% at 11:27 am GMT to $1.1476. Earlier it climbed to as much as $1.1486, the highest since November 7, flirting with the $1.15 mark, above which it was last time two months ago.

The pound advanced 0.63% to $1.2695 and testing the strongest point since December 10. The US currency declined 0.75% to ¥111.744, following a dip to ¥111.665, a level last seen on October 26. The dollar traded 0.79% in the red at 0.98736 Swiss francs, close to the weakest value since mid-October.

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