Moscow. November 19. Dollar interrupted the rally, losing at least 0.3% in pairs with all major currencies of developed countries, as the Protocol of the October meeting of the Federal reserve system has fixed quite soft (dovish) stance of the heads of the U.S. Central Bank, reports Bloomberg.
The participants of the Forex market has responded to yet another assurance by the fed that rate hikes will be slow and restrained.
Meanwhile, the yen is rising against the dollar after the Bank of Japan kept its course of monetary policy, refrained from expanding incentive programs.
The single European currency by 9:18 GMT 19 November cost $1,0707 compared to $1,0660 at the end of the previous session in new York, for which the Euro strengthened by 0.2%.
The yen gained against the dollar by 0.3% to 123,27/$1. The value of the Japanese national currency in tandem with Euro fell to 131,98 131,79 against the yen the day before.
“If the fed can succeed in convincing investors that rates will move up very slow, for the dollar, the situation will become less favourable, especially in pairs with risky currencies,” said currency analysts at Citi in Singapore, Todd Elmer.
The majority of participants of the October meeting of the fed believed that due to improved economic conditions by December the tightening of monetary policy before the end of the current year will be reasonable, although some thought it necessary to raise the cost of lending in October.
In addition, on Wednesday, addressed the heads of several Federal reserve banks, including William Dudley of new York and Dennis Lockhart of Atlanta. The General tone of their statements boiled down to the fact that rates will need to increase soon, possibly as early as December. And William Dudley stressed that at this stage, tightening monetary policy – good signal, which indicates the stability of the American economy.
According to futures quotations at the level of basic interest rates, the probability of its increase at the meeting of December 15-16, valued at 66%, and before publication of the Protocol.