World Bulletin / News Desk
The dollar fell back against the euro Thursday but firmed against the yen, as markets assessed the Federal Reserve's outlook for US interest rates.
Wall Street opened slightly lower on Thursday on profit-taking.
Fed chief Janet Yellen said the world's biggest economy was "performing well". It also emerged from the closely-watched meeting that most members of the policy board wanted to lift borrowing costs by December.
The central bank also announced it would next month begin cutting back on its holdings of bonds and other assets built up as part of a scheme to keep rates low and steer the economy through the global financial crisis a decade ago.
"The Federal Reserve's intention to start shrinking its balance sheet in October and hike interest rates in December was positive for the US dollar," said London Capital Group analyst, Jasper Lawler.
"The glacially slow pace of the intended unwind of QE (quantitative easing) meant there were no ruffled feathers in stock markets," the expert said.
"The prospect of QT (quantitative tightening) could mean markets are in the last gasps of a two week rally, but there is no sign of sentiment souring yet."
Accendo analyst Mike van Dulken agreed.
"Equities are taking the Fed's latest policy tightening move in their stride. Probably because it was one of the most telegraphed moves ever, balanced up with the door being left ajar for another December hike... No drama, just like the Fed (and markets) prefer."Last Mod: 22 Eylül 2017, 00:42