Dollar down on Fed, while equities hit by Trump fear

After the central bank's first meeting of the year policymakers noted ongoing economic growth, job gains and improving business and consumer confidence, but gave little away about its intentions for monetary policy.

Dollar down on Fed, while equities hit by Trump fear

World Bulletin / News Desk

The dollar edged down in Asian trade Thursday after an uninspiring statement from the Federal Reserve's latest policy meeting while concerns over Donald Trump's presidency hit equity markets.

The Fed said it "expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate", almost unchanged from its December statement.

The bank said it still expects to raise rates only gradually, though analysts said the timing is a subject of debate.

While it was not expected to make any big announcements -- having hiked interest rates last month -- the lack of any solid guidance hit the dollar, which was already under pressure on concerns about the controversial start to Trump's term in office.

“Traders seem to be disappointed with the Fed’s decision,” Greg McKenna, chief market strategist at FX and CFD provider AxiTrader, said in a note.

“Janet Yellen’s statement was a bit of an anticlimax insofar as it completely straight-batted the current outlook and added little fresh information on the outlook for the US economy.”

The greenback dipped against the yen and euro while it also retreated against most higher-yielding currencies including the South Korean won, Australian dollar and Canadian dollar.

Last Mod: 02 Şubat 2017, 12:01
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