World currency dynamics as of today

28.10.2015

The dollar rises against a basket of six other major currencies on the eve of the announcement Fed meeting results.

The dollar index rose 0.1 % to 97.001. Most investors do not expect the Fed to raise interest rates this week, but there is a chance that the central bank will raise rates at the last meeting of this year, in December.

"Recently we have received from the United States a few weak economic reports, including retail sales, industrial production, foreign trade, and now there are the orders for durable goods. None of these reports did not give reasons to an increase in rates," - said senior manager at Customer Resona Bank, Masatoshi Omata.

The volume of orders for durable goods in the US, excluding aircraft and defense orders, in September fell 0.3 % while the forecast said their volume will be kept at the level of August. The consumer confidence index in October fell to 97.6 points from 102.6 points in September against the forecast of an increase to 103 points.

The dollar fell against the yen by 0.06 % to 120.38 yen. Analysts are not sure that the Bank of Japan at the Friday meeting will announce new stimulus measures, but expect lower prices in the forecast of the central bank's semi-annual report.

The euro fell 0.14 % to $ 1.1032. According to a member of the European Central Bank executive board, Benoit Coeur, the central bank may have to further lower interest rates on deposits, if inflation will not grow as fast as the ECB forecasts.

Sterling fell to $ 1.5296 from the marked monthly high of the last Thursday at $ 1.5510, after reporting a slowing growth in UK GDP to 0.5 % in the third quarter from 0.7 % in the second quarter, with a growth forecast by 0.6 %.

The Australian dollar fell 1.01 % to $ 0.7120, as after the inflation report in Australia, investors expect the central bank to lower interest rates next week.

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