Bloomberg(18/9) -- The dollar traded 0.2
percent from a seven-month low against the euro after the Federal
Reserve kept the current pace of asset purchases that tend to debase the
currency, defying economists predicting a stimulus reduction.
Demand for the greenback waned after
policy makers maintained the U.S. central bank’s $85 billion of monthly
purchases of government debt and mortgage-backed securities, known as
quantitative easing or QE, compared with a forecast by economists
surveyed by Bloomberg News for a $5 billion reduction in Treasury
purchases. The yen maintained losses versus most of its major
counterparts after a government report today showed Japan had a trade
deficit for a 14th month.
“The Fed statement was noticeably
dovish, causing dollar selling,” said Yuki Sakasai, a foreign-exchange
strategist in New York at Barclays Plc. “There is expectation that there
may more QE.”
The dollar was little changed at $1.3526
per euro as of 9:23 a.m. in Tokyo after touching $1.3542 yesterday, the
weakest since Feb. 7. It gained 0.1 percent to 98.08 yen after falling
as much as 1.4 percent yesterday to 97.76, the lowest since Aug. 29.
Japan’s currency slid 0.2 percent to 132.63 per euro.
“Conditions in the job market today are
still far from what all of us would like to see,” Fed Chairman Ben S.
Bernanke said at a press conference yesterday in Washington after a
two-day meeting of the Federal Open Market Committee. “The committee has
concern that rapid tightening of financial conditions in recent months
would have the effect of slowing growth.”
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Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:07 AM
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