The dollar weakened against the yen and Swiss franc on Wednesday as traders reckoned emergency action taken to stall the fall of the Turkish currency would not be enough to calm jitters over global emerging markets.
As expected, the Federal Reserve pared its massive stimulus by an additional $10 billion, leaving the U.S. currency little changed. In December, U.S. central bank policy-makers surprised some investors by paring its third round of quantitative easing by $10 billion in January to $75 billion.
The greenback initially rose against the yen and Swiss francs— traditional safe haven currencies—after a surprisingly aggressive interest rate hike by the Turkish central bank in a bid to shore up its currency, which had shed over 3 percent since Friday.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015