Dollar falls after Fed holds rates

AFP, TOKYO: The dollar fell against the yen yesterday in Asia after the US Federal Reserve held fire on raising rates, citing concerns about slowing growth in China and a fragile world economy.
Emerging market currencies—which have fallen nearly 20 per cent in the past year—edged up in choppy trade, but they are still on course for a rare weekly gain against the dollar.
The dollar fell to 119.76 yen in yesterday morning trade in Tokyo, down from 120.01 yen in New York and well down from 120.90 yen in Asia earlier Thursday.
The euro came to $1.1405 compared with $1.1436 in US trade but remains much stronger than the $1.1302 seen Thursday in Tokyo. The single currency bought 136.58 yen in Tokyo, compared with 137.25 in New York.
Traders shifted out of the dollar soon after the Fed decision to keep rates at zero, which came after one of its most highly anticipated meetings in years. However, nervous investors were also spooked by comments from bank chief Janet Yellen who struck a more downbeat tone than expected about both the health of the US economy, and the outlook for global growth.
“Dollar-selling sentiment emerged following the Fed’s decision, but the market still expects a rate hike in the future,” said Yosuke Hosokawa, head of FX sales team at Sumitomo Mitsui Trust Bank.

Dollar falls after Fed holds rates

AFP, TOKYO: The dollar fell against the yen yesterday in Asia after the US Federal Reserve held fire on raising rates, citing concerns about slowing growth in China and a fragile world economy. Emerging market currencieswhich have fallen nearly 20 per cent in the past yearedged up in choppy trade, but they are still on course for a rare weekly gain against the dollar. The dollar fell to 119.76 yen in yesterday morning trade in Tokyo, down from 120.01 yen in New York and well down from 120.90 yen in Asia earlier Thursday. The euro came to $1.1405 compared with $1.1436 in US trade but remains much stronger than the $1.1302 seen Thursday in Tokyo. The single currency bought 136.58 yen in Tokyo, compared with 137.25 in New York. Traders shifted out of the dollar soon after the Fed decision to keep rates at zero, which came after one of its most highly anticipated meetings in years. However, nervous investors were also spooked by comments from bank chief Janet Yellen who struck a more downbeat tone than expected about both the health of the US economy, and the outlook for global growth. Dollar-selling sentiment emerged following the Feds decision, but the market still expects a rate hike in the future, said Yosuke Hosokawa, head of FX sales team at Sumitomo Mitsui Trust Bank.