Fed decision pushes dollar downwards

The dollar has slipped against its
Japanese and eurozone counterparts today (October 31st) after the
Federal Reserve announced it would maintain its asset purchase
programme for the time being.

After the Fed said it would
continue with its $85 billion per month bond-buying programme, the
dollar hit a session low of 98.28 against the yen during Asian
trade before consolidating at 98.30, a fall of 0.22 per cent.

It came as the Bank of Japan also
decided to keep its vast monetary easing programme in place, as it
continues in its quest to achieve two per cent inflation by
2015.

Meanwhile, the euro gained 0.16 per
cent on the US currency to stand at 1.3766, after plumbing lows of
1.3733 and a session high of 1.3778.

Since the Fed chose not to give any
hints regarding when it will eventually start to wind back
stimulus, 
currency exchange investors are still uncertain as to
whether the drag placed open the US economy by the government
shutdown will mean easing measures are relaxed at december’s
meeting or into next year.