The greenback rebounds on Thursday, recouping most of the ground lost in the previous session. The Federal Reserve jolted markets by abandoning all plans to raise rates this year.
The dollar index, which measures the greenback against six major currencies, was up 0.53% at 96.271. The index fell 0.6% on Wednesday, closing below its 200-day moving average for the first time in more than 10 months. The Fed took a dovish stance, signalling it will not hike interest rates this year in the face of a slowing economy.
Despite the rebound on Thursday, forex experts expect the dollar to remain pressured for the rest of 2019.
The euro tumbled earlier this month after the European Central Bank postponed the timing of its first post-crisis rate hike to 2020 at the earliest. ECB launched a new round of cheap loans to banks. The common currency has gained nearly 2% against the dollar since then.
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The Swiss franc was up slightly against the greenback after Swiss National Bank Chairman said increasing global economic risks meant the central bank would stick to its ultra-loose monetary policy for the foreseeable future.
The pound extended losses amid fears of a catastrophic “no-deal” Brexit should lawmakers hold firm in their rejection of Prime Minister Theresa May’s divorce deal with the EU. Sterling was last down 0.42% at $1.314. The Bank of England kept interest rates steady on Thursday. Various gauges of market volatility in the pound remained firm, even as other gauges, such as one-month euro volatility indexes, ticked lower.
Oil edged lower on Thursday but held near 2019 highs, supported by a tightening of global stocks, OPEC production cuts and U.S. sanctions on key producers Iran and Venezuela.
Brent crude futures were down 24 cents at $68.26 a barrel by 1102 GMT. It has hit their highest since Nov. 13 at $68.69 earlier in the session. WTI crude futures were at $60.01 per barrel, down 13 cents. WTI reached its highest since Nov. 12 earlier in the day, at $60.33.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.