Dollar dips following Fed meeting

Published: 10 Jul at 5 AM Tags: Euro, Dollar,

The dollar has slipped to its lowest level against a number of other currencies in a week after the Federal Reserve gave no indication as to when it intends to push up interest rates. Minutes from the central bank’s June meeting reveal that policy makers discussed the unwinding of the stimulus programme and agreed that October would be the last month in which bond purchasing would take place.

The dollar index is down 0.2 per cent to 79.983. The weakness of the greenback has helped the euro hit $1.3649, the highest the single currency has been all week.

Earlier the dollar dropped to 101.44 yen but has since recovered slightly to 101.60 yen. The euro has also recovered to 138.77 yen after dipping as low as 138.14 yen.

Mario Draghi, President of the European Central Bank, delivered a speech in London earlier in the week in which he called for greater integration in Europe in order to encourage growth and jobs. He also reiterated the ECB’s intention to boost growth by using unconventional instruments.

Sterling is up to $1.7157 and the Canadian dollar is also up. The Australian dollar has managed to recover from last Thursday’s tumble following a warning issued by the Reserve Bank of Australia to investors that the Aussie could experience a sharp correction.