The dollar is tumbling

The dollar is weaker in the aftermath of the Fed’s Wednesday decision to hold rates again.

The US dollar index is down by 0.5% at 96.59 as of 7:37 a.m. ET.

Notably, there was a bit of a discrepancy between how economists interpreted the Fed’s recent statement and how the market did. The former group took it as a signal that the Fed is prepping for its next hike, while Fed fund futures suggest at 45.2% chance of a December rate hike (compared to 49.2% on Wednesday morning).

Separately, it’s another quiet day for data in the US economy. Initial jobless claims and the trade balance will be released at 8:30 a.m. ET.

As for the rest of the world, here’s the scoreboard as of 7:37 a.m. ET:

  • The Russian ruble is down by 0.9% at 66.5301 per dollar after the latest data from the Economy Ministry showed that Russia’s economy shrank by 0.6% in the second quarter compared to a year earlier. That would be the smallest contraction since the country dipped into a recession last year.
  • The euro is up by 0.2% at 1.1083 against the dollar. Earlier in the day, Germany’s unemployment change came in at -7,000, better than expectations of -3,000, and the unemployment rate sat unchanged at 6.1%.
  • The Japanese yen is stronger by 0.6% at 104.75 per dollar.
  • The British pound is down by 0.4% at 1.3166 against the dollar.

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