Dollar edges upwards after Fed decision

Currencies Direct January 30th 2014 - < 1 minute read

The dollar has crept upwards against the yen in Asian trade
after the Federal Reserve said it plans to continue to wind back is
monetary easing programme.

According to the 
Fed’s announcement
 yesterday, an additional $10 billion
will be shaved off the huge asset purchase scheme, which was
originally valued at $85 billion per month. An initial $10 billion
was cut from the scheme in December.

The greenback ticked upwards against the yen as a result,
gaining 0.19 per cent to 102.45 yen during the session after even
reaching as high as 102.54. However, the decision had been widely
expected, meaning many of the gains were already priced into
the exchange
rate
.

In addition, the yen retained some of its “safe haven” appeal to
hold back the dollar’s rise thanks to a sell-off in emerging market
currencies.

Both Turkey and South Africa raised interest rates yesterday in
a bid to limit decline in the lira and rand respectively, but the
decisions did not manage to support the embattled currencies.

For all the latest news on currency exchange be sure to check
out our Daily Podcasts.

Written by
Currencies Direct

Select a topic: