The dollar weakened against global currencies

The dollar weakened against global currencies


According to the trades, as at 12.55 GMT the dollar index was down 0.4%. The dollar against the yen rose to 120,18 yen per dollar. The Euro-dollar exchange rate rose up to 1,1338 dollar to the Euro.

MOSCOW, 9 Oct. American currency is demonstrating a negative dynamics on Friday on the background of the minutes of the meeting of the Federal reserve system (FRS) the USA give added investor expectations that the regulator will postpone a rate increase in the country, according to AFP.

As at 12.55 GMT, the dollar index (the dollar against a basket of currencies of six major U.S. trading partners) was down 0.4%, up to 94,92 points. The dollar against the yen rose to 120,18 yen per dollar with 119,93 yen per dollar at the previous closing. The Euro-dollar exchange rate rose up to 1,1338 1,1277 of the dollar from the dollar to the Euro.

According to the FOMC minutes, members of the open market Committee believe that the decision on the first since 2006 the rate increase is necessary so that the level of inflation in the country was close to the target mark of 2%. Another reason for the failure to raise rates at the September meeting was the uncertainty about the state of the global economy.

According to members of the Committee, the latest economic developments in the world and in the financial markets can in some way to restrain economic activity in the country due to the strengthening of the American currency. In addition, the negative effects of the economic slowdown in China and emerging markets could also exert pressure on the economy, said the fed.

The minutes of the meeting of the financial regulator have increased investor expectations that the fed will not change interest rates until 2016. According to the economist at Shinkin Asset Management, yuna Kato (Jun Kato), lower expectations for higher interest rates makes the dollar vulnerable.