Dollar Plunges as Traders React to Fed Minutes; RBA Comments
The U.S. Dollar is down sharply across the board overnight as investors are reacting to yesterday’s U.S. Federal Reserve minutes and comments from the Reserve Bank of Australia.
The Forex markets are having a delayed reaction to the release of yesterday’s Fed minutes which showed the decline in the Dollar was not a major concern. The minutes basically stated the weakness in the Dollar is tolerable as long as it occurs in an orderly fashion.
Comments from the RBA’s Deputy Governor Battellino also drove up demand for risk appetite. In a statement to Australian housing conference attendees he said, “With the economy having only recently entered a new upswing, it is reasonable to assume that we will see this growth extended for a few more years yet”.
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