Posted On: April 04, 2012
The value of the world's reserve currency climbed to its top rate in seven days against the shared currency of the European Union after minutes from the policy-making arm of the U.S. Federal Reserve indicated a delay in additional monetary easing, according to
The U.S. dollar also rose in value against the Japanese yen, which recently has been subject to intervention measures by its central bank. But the Tuesday release of minutes from the March meeting of the Federal Open Market Committee noted that the Fed will not deploy a third round of quantitative easing unless the nation sees expansion slow or prices increase more slowly than 2 percent.
"The dollar is gaining because the market is correct to price out some of the expectation of additional QE that they have been busy pricing in," currency strategy head Ray Attrill with BNP Paribas in New York told Bloomberg. "Those that were looking for any kind of strong signal that additional QE is more likely than not are being significantly disappointed."
The Wall Street Journal reports
stocks were in sell-off mode on Tuesday afternoon as a consequence of the FOMC stopping short of implementing other forms of stimulating the economy.
Category: Industry News
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