USD/JPY to 4-month low

22.03.2017

On Wednesday, the US dollar rate fell to a four-month low against the yen amid growing doubts of investors in the ability of Trump to apply his policy that would lead to economic growth.

USD/JPY fell 0.3% to 111.36, the lowest since November 23.

On Tuesday, the stock market showed the worst result this year because of weakening hopes for a course aimed at economic growth as promised by President Trump. The concerns rose before the important vote to abolish the ‘Obamacare’.

The US dollar index was traded at position 99.63 after dropping to 99.45, the lowest value since February 2.

The US dollar was under pressure in recent sessions after the Fed raised the interest rate last week, but reiterated that the rate hikes will be gradual. This disappointed the market players who expected more hikes this year and a sooner tightening of the monetary policy.

Also, the dollar's exchange rate was adversely affected by the appreciation of the euro due to an increased probability of a tighter monetary policy by the ECB and a more positive outlook for the results in the French presidential elections.

On Tuesday, the euro's exchange rate exceeded $ 1.08 for the first time in six weeks after centrist Emmanuelle Macron strengthened his leadership position as a favorite for the future election.

EUR/USD fell 0.16% to 1.0792, keeping close to the high of the previous session of 1.0818.

The pound rate maintained support near to a three-week high. GBP/USD was trading at 1.2472 after the release of the inflation report in the UK, which showed that last month it exceeded 2% for the first time since September 2013 - the target level of the Bank of England.

The Australian dollar fell in price: AUD/USD lost 0.55% to 0.7649, having retreated from Tuesday's high of 0.7748.

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