News article

Euro hits five-week high against dollar

Euro hits five-week high against dollar
//
Forex traders saw the euro stretch to its highest point against the greenback for five weeks today (January 24th) as the Federal Reserve laid out plans to keep the interest rate low until at least 2014 in order to stimulate growth.

This reduced demand for the American currency among investors and brought it down against 13 of its 16 peers in the market, reports Bloomberg.

The dollar fell 0.2 per cent to $1.3130 per euro, while the European common currency dropped 0.3 per cent to 101.66 yen, despite reaching 101.98 against the Japanese currency earlier in the day.

Neil Jones, the head of European hedge fund sales at Mizuho Corporate Bank, said: "The dollar has been getting sold across the board rather heavily since the Fed's announcement."

He added that the dovish headlines from the Federal Reserve had encouraged the market to sell dollars.

The euro suffered its first loss for three days after difficulties regarding the Greek debt decision, the news provider noted.

Posted by Clive ArneilADNFCR-1681-ID-801275360-ADNFCR