Dollar rises on Fed’s positive economic recovery outlook

17.09.2020 - Petr Mazaylo
Dollar rises on Fed’s positive economic recovery outlook

The dollar rebounded across the board on Thursday, reporting its biggest daily gain in over a week as the Federal Reserve’s decision to keep interest rates on hold in the coming weeks prompted a wave of short positions for the greenback.

Still, the Fed’s decision disappointed some investors who had bet on a more dovish stance. Earlier this week, investors had bet the Fed will announce more policy easing, pushing the dollar lower.

The dollar index rose 0.32% to 93.493. The U.S. currency slid to more than two-year lows below 92 this month.

The euro briefly hit a one-month low of $1.1737 in Asia before standing only 0.4% lower for the day. The Aussie dropped 0.4% to $0.72770 despite strong jobs data.

The safe-haven Japanese yen traded at 105.08 on the dollar, briefly below a 2 ½-month high of 104.81 hit overnight. The pound sat at $1.2932 after falling over 3.5% on the dollar and the euro last week. 

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