Dollar fell against major currencies

17.06.2016

On Friday, the dollar fell against the major currencies, as the weak economic reports that were released in the previous session, and the Fed's decision to keep interest rates unchanged, are still putting pressure on the US currency.

USD/JPY pair was stable at the level of 104.29, still holding at 22-month low of 103.55, reached on Thursday.

Sentiment on the dollar remained fragile after on Thursday the US Department of Labor said the number of initial applications for unemployment benefits for the week ending June 11 increased by 13000 to 277000.

In addition, the US Commerce Department reported that consumer prices rose 0.2%, while there was expected a growth by 0.3% in May. In annual terms, consumer prices rose 1.0% last month, which was below forecasts of 1.1%.

The yen showed growth against the dollar after the Bank of Japan voted in favor of a further increase in the monetary base by 80 billion yen per year.

At the end of its meeting on Thursday, the Bank of Japan also said that the British referendum on membership in the EU is a key geopolitical threat to the Japanese economy, along with the "debt problems in Europe."

The decision was made after on Wednesday the Fed also indicated the referendum as one of the factors that influenced its decision to keep the interest rate unchanged.

The dollar weakened against the major currencies, the Fed decided to maintain its interest rates unchanged and lowered its growth forecasts for interest rates in the next few years.

EUR/USD rose 0.21% to 1.1250.

The dollar fell against the pound and the Swiss franc: GBP/USD rose 0.65% to 1.4297 and USD/CHF fell 0.22% to 0.9631.

On Thursday, the Bank of England decided to maintain its current monetary policy and once again warned that the likelihood of the country's exit from the EU is an "immediate risk to the UK financial markets, as well as, perhaps, for the world's financial markets."

Australian and New Zealand dollars showed an increase: AUD/USD pair rose 0.35% to 0.7389 and NZD/USD rose 0.14% to 0.7055.

USD/CAD went down 0.29% to 1.2927, falling from a two-week high the previous session of 1.3085.

The USD index was down 0.22% to 94.55.

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