Forex Market News Today
  • Home
  • News
  • LiveHourly
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies
No Result
View All Result
Forex Market News Today
Home Economy

US dollar sinks under Fed’s pledge to keep rates low during coronavirus swoon

2 months ago
in Economy
3 min read
US dollar sinks under Fed’s pledge to keep rates low during coronavirus swoon
Share on FacebookShare on Twitter


The Conference Board’s chief public policy economist Joseph Minarik and Bankrate senior economic analyst Mark Hamrick respond to Federal Reserve Chair Jerome Powell’s latest announcement.

The U.S. dollar on Thursday plunged to a more than 2.5-year low against a basket of its peers after the Federal Reserve pledged to keep interest rates low until the economy shows signs of a sustainable recovery.

The dollar index fell 0.71% to 89.72 Thursday, the lowest since April 2018. The greenback has fallen 13% since COVID-19 lockdowns began in mid-March and is down 6.6% this year. A close below 88.50 would be the worst since November 2014.

The dollar is trading at/near multi-year lows against major currencies including the euro, Japanese yen, Australian dollar and Chinese yuan. A weaker dollar makes American-made products cheaper for overseas buyers, but also makes imports more expensive for U.S. consumers.

STOCK BULLS NEED BREATHER AS COVID-19 VACCINE ROLLS OUT

“The dollar has lurched lower against nearly all the world currencies today,” wrote Marc Chandler, chief market strategist at the capital markets trading firm Bannockburn Global Forex.

The selling comes a day after the Federal Reserve said it would maintain the size of its $120 billion per month asset purchase program until “substantial further progress” is made in meeting its goals of maximum employment and price stability.

The central bank on March 15 slashed its federal funds rate to near zero in order to help combat what would become the sharpest economic slowdown of the post-World War II era amid stay-at-home orders aimed at slowing the spread of COVID-19.

CLICK HERE TO READ MORE ON FOX BUSINESS

The Fed cut its key interest rate by 150 basis points in March, in addition to taking other measures, to ensure the flow of credit through the economy.

“The decline in the US currency’s interest rate advantage over its G10 peers” has been a factor in the dollar’ demise, wrote Mark Haefele, chief investment officer of UBS Global Wealth Management. The spread between the U.S. and German 2-year yields has shrunk to 90 basis points from 215 bps.

Also contributing to the dollar’s weakness is the decline for safe-haven assets following the discovery of a COVID-19 vaccine and the likelihood of another round of fiscal stimulus.

Lawmakers on Capitol Hill are nearing a compromise on a $908 billion bipartisan COVID-19 relief package. The aid, which is split into two separate bills, if approved, could extend $748 billion toward unemployment benefits, Paycheck Protection Program funding and direct payments to individuals and another $160 billion for state and local government funding and liability protections for businesses.

TESLA STOCK’S S&P 500 ENTRY TO DRIVE TSUNAMI OF TRADING VOLUME

The prospect for further fiscal stimulus will likely “keep US indebtedness in focus,” Haefele wrote, noting that all the ingredients are “in place for further dollar weakness.”

Haefele sees the dollar…



Go to the news source: US dollar sinks under Fed’s pledge to keep rates low during coronavirus swoon

Tags: coronavirusdollarFedspledgeRatessinksswoon
Previous Post

Holiday shipping gridlock is delaying 6 million packages a day

Next Post

Bitcoin hits record high over $23,000 as shares and pound push higher – business…

Related Posts

The US’s blockbuster manufacturing PMI points to supply chain issues
Economy

The US’s blockbuster manufacturing PMI points to supply chain issues

by Forex News
March 2, 2021
0

There’s a lot to look at in markets at the moment, but in the last week of February, the...

Read more
Asian shares fall amid China’s asset-bubble warning By Reuters
Economy

Asian shares fall amid China’s asset-bubble warning By Reuters

by Forex News
March 2, 2021
0

2/2 © Reuters. FILE PHOTO: FILE PHOTO: HKEX sign is seen at the 2020 China International Fair for Trade...

Read more
Asia shares fall as China bank regulator warns of foreign ‘bubble’
Economy

Asia shares fall as China bank regulator warns of foreign ‘bubble’

by Forex News
March 2, 2021
0

Asia-Pacific equities fell after China’s banking regulator voiced concern over bubbles in foreign markets, a day after Wall Street...

Read more
Boost to businesses affected by COVID-19 | 9 News Australia – 9 News Australia
Economy

Boost to businesses affected by COVID-19 | 9 News Australia – 9 News Australia

by Forex News
March 2, 2021
0

Boost to businesses affected by COVID-19 | 9 News Australia 9 News Australia Go to the news source:...

Read more
The manufacturing boom’s bottleneck – Axios
Economy

The manufacturing boom’s bottleneck – Axios

by Forex News
March 2, 2021
0

The manufacturing sector has bounced back from its pandemic knockout. But as the economy reopens, factories can't keep up...

Read more
The price of food and gas is creeping higher — and will stay that way for a whil…
Economy

The price of food and gas is creeping higher — and will stay that way for a whil…

by Forex News
March 1, 2021
0

Recent price spikes for food and gas have caught the attention of consumers, as well as analysts — who...

Read more
Fed policy changes could be coming in response to bond market turmoil, economist…
Economy

Fed policy changes could be coming in response to bond market turmoil, economist…

by Forex News
March 1, 2021
0

Joggers pass the Marriner S. Eccles Federal Reserve building in Washington, D.C., on Tuesday, Aug. 18, 2020.Erin Scott |...

Read more
Semiconductor shortage halts auto factories
Economy

Semiconductor shortage halts auto factories

by Forex News
March 1, 2021
0

The Santa Clara, Calif.-headquartered company did its best to ramp up production for car manufacturers at its three big...

Read more
Jim Cramer on what the J&J vaccine means for the economy and markets: ‘This is h…
Economy

Jim Cramer on what the J&J vaccine means for the economy and markets: ‘This is h…

by Forex News
March 1, 2021
0

Jim Cramer on what the J&J vaccine means for the economy and markets: 'This is huge' CNBC Television ...

Read more
Warren bill would impose wealth tax on $50M households
Economy

Warren bill would impose wealth tax on $50M households

by Forex News
March 1, 2021
0

Sen. Elizabeth WarrenElizabeth WarrenSenate mulls changes to .9 trillion coronavirus bill Exclusive: How Obama went to bat for Warren Minimum wage...

Read more
Next Post

Bitcoin hits record high over $23,000 as shares and pound push higher – business...

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Latest Forex News

Live Foreign Currency Exchange Rates

UP-Delhi Border Partially Shut Amid Farm Protests:10 Points

2 months ago
This Day in History: Nov. 28 – Fox News

This Day in History: Nov. 28 – Fox News

3 months ago
Fed officials see economy ‘far from’ where it needs to be, minutes show

Fed officials see economy ‘far from’ where it needs to be, minutes show

2 weeks ago
Sinovac: Confidence in Chinese vaccines has taken a hit. But as coronavirus case…

Sinovac: Confidence in Chinese vaccines has taken a hit. But as coronavirus case…

1 month ago

Today Market News

Dollar, GBP/USD, AUD/USD, Gold & Bitcoin
Live

Bitcoin, Gold, Dollar, EUR/USD, AUD/USD and USD/CAD Technical Levels

March 2, 2021
The US’s blockbuster manufacturing PMI points to supply chain issues
Economy

The US’s blockbuster manufacturing PMI points to supply chain issues

March 2, 2021
Tax hikes, furlough extensions, hawkish tone: Predictions for UK budget
World

Tax hikes, furlough extensions, hawkish tone: Predictions for UK budget

March 2, 2021
HP Inc. to Participate at Morgan Stanley’s Investor Conference
Live

HP Inc. to Participate at Morgan Stanley’s Investor Conference

March 2, 2021
Asian shares fall amid China’s asset-bubble warning By Reuters
Economy

Asian shares fall amid China’s asset-bubble warning By Reuters

March 2, 2021
Millions of Participants From 150 Countries Joined the Live Online 5th Rally of …
Live

Millions of Participants From 150 Countries Joined the Live Online 5th Rally of …

March 2, 2021
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 Siteofforex.com

No Result
View All Result
  • Home
  • News
  • Live
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies

© 2020 Siteofforex.com

wpDiscuz