US Dollar Still Weak After Fed Hints at More Easing
Arslan Butt • 1 min read
Early on Thursday, the US dollar continues to trade weaker against its major peers after the Fed signaled the possibility of further monetary easing measures even as the market’s risk sentiment received a boost over expectations of restarting economic activity. At the time of writing, the US dollar index DXY is trading around 99.57.
The safe haven appeal of the US dollar is under pressure after several countries reported a slowdown in the rise in number of coronavirus cases and are looking at ways to reopening their economies soon. This sentiment has helped improve the risk sentiment in global financial markets, giving a boost not only to equities but also riskier currencies.
The greenback was weighed down further by the Fed’s comments at its latest meeting on Wednesday where it hinted at rolling out more easing measures to stimulate the US economy and help its recovery post the pandemic. The US has been experiencing a sharp rise in unemployment over the past few weeks ever since the shutdowns were enforced, which is likely to keep consumer spending under pressure in the near future and delay economic recovery.