Dollar hits two-year lows as Fed affirms dovish stance
The U.S. dollar fell to a two-year low on Wednesday after the Federal Reserve repeated a pledge to use its “full range of tools” to support the U.S. economy and keep interest rates near zero for as long as it takes to recover from the fallout from the coronavirus outbreak.
The U.S. central bank cited concerns about economic activity and employment remaining “well below their levels at the beginning of the year.”
The dollar index against a basket of currencies fell 0.44% to 93.42 after getting as low as 93.17, the weakest since June 2018.
The euro gained 0.56% to $1.1780, after earlier reaching $1.1805, the highest since September 2018.
The dollar was last down 0.10% at 104.97 yen. Sterling gained 0.45% to $1.2988 and the Aussie gained 0.36% to $0.7183.
The greenback has tumbled on expectations that the Fed will continue its ultra loose monetary policy for years to come and on speculation that it will allow inflation to run higher than it has previously indicated before raising interest rates.
U.S. deaths from the novel coronavirus surpassed 150,000 on Wednesday, a number higher than in any other country and nearly a quarter of the world’s total, according to a Reuters tally.
Reference: Reuters
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