The dollar has risen to five week highs against both the euro and yen after language in the latest FOMC statement suggested a coming “pause” at the Fed. Yesterday’s cut brought rates down to an even 2% and marked the seventh consecutive cut, representing a “substantial,” in the Fed’s words, easing of policy. Bloomberg:
The dollar rose to $1.5527 by 7 a.m. in New York, from $1.5622 yesterday. It touched $1.6019 per euro on April 22, the lowest level since the 15-nation currency’s launch in 1999. The dollar rose against the yen to 104.13 from 103.91. The euro fell to 161.65 yen from 162.36.
The dollar gained 4.2 per cent against the yen and 1.1 per cent versus the euro in April. It’s down about 7 per cent against both currencies this year. The euro advanced 3.2 per cent versus the yen last month, paring this year’s loss to 0.5 per cent.