The U.S. dollar retreats Thursday amid investors doubt that the Federal Reserve will raise interest rates this year. In the WSJ Dollar Index (US$ vs 16 other currency) was down by 0.1% to 86.297. The dollar went down against the euro, British pound and some emerging-market currencies but was higher against the Japanese yen.
Last Wednesday, the Federal Reserve left interest rates unchanged but signaled it could tighten policy in the months ahead. Still, investors remain doubtful that rates will go up this year. According to Fed officials they want to raise short-term borrowing costs but have been repeatedly stymied by turmoil in global markets and a string of soft data, from U.S. economic growth to productivity. Even though reports about the U.S. economy is in good shape and unemployment rate is falling.
The central bank also has acknowledged that rates are likely to remain lower in the future as economic growth slows, which analysts see as a negative for the dollar.
The biggest question is why there are reports that the economy is doing great and umployment rate is improving but when it comes to the Feds the sky is falling? Maybe Donald Trump is right about the Federal Reserve, doing what President Barack Obama wants by keeping interest rates low.
U.S. stocks extend gains as Nasdaq rallies to record high
U.S. stocks climbed for a third session Thursday as the Nasdaq finished at a record-high close following the Federal Reserve’s decision to keep the interest rates low. The S&P 500 rose 14 points, or 0.6%, to end at 2,177 while the Dow Jones Industrial Average added 98 points, or 0.5%, to finish at 18,391. The tech-heavy Nasdaq Composite Index advanced 44 points, or 0.8%, to close at 5,339 after touching an intra-day record of 5,342.88. The Fed on Wednesday kept rates unchanged even as Chairwoman Janet Yellen hinted that a tighter monetary policy is likely by the year end.
- U.S. jobless claims drop to two-month low
- Amazon.com hits all-time high on analyst report
- Indexes up: Dow 0.54 pct, S&P 0.65 pct, Nasdaq 0.84 pct (Updates with close of U.S. markets)
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