Dollar steady at 5-week lows

17 March, 2017

Dollar steady at 5-week lows

The dollar was little changed at five-week lows against other major currencies on Friday, as the tone of the Federal Reserve’s latest policy decision continued to dampen demand for the greenback.EUR/USD edged up 0.11% to a five-week high of 1.0778.The greenback weakened broadly as the Fed’s policy statement was seen as less hawkish than expected by sticking to projections of three total rate hikes in 2017 and not four as some traders had hoped for.As expected, the Fed increased interest rates by 25 basis points to 1.00% from 0.75%.Market participants were looking ahead to reports on U.S. industrial production and consumer sentiment due later in the day.Meanwhile, the euro remained supported after centre-right Prime Minister Mark Rutte beat anti-Islam politician Geert Wilders in the Dutch election on Wednesday, easing concerns over a potential Dutch exit from the European Union.GBP/USD slipped 0.14% to 1.2341, pulling away from the previous session’s two-week high of 1.2378.

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