Dollar nosedives to seven-week low against Japanese Yen as Fed hints rate-cut

by   |  VIEW 606

Dollar nosedives to seven-week low against Japanese Yen as Fed hints rate-cut

On Friday, the 28th of February 2020, the American dollar fell to a seven-week low against the Japanese currency after the Fed Chair Jerome Powell had hinted the US Central Bank could slash interest rate this year over the narratives of a fast-spreading coronavirus.

In point of fact, Friday’s (February 28th) slump of the US Dollar came forth as the Central Bank was quoted saying it would “act as appropriate” to support the economy’s longest expansion on record currently at its eleventh year, though Powell had also added that the world’s No.

1 economy had still been in a solid condition. Besides, over growing expectation that the Fed might cut interest rate as early as on March FOMC minutes by 25bps, the US Dollar index measured against a bucket of six major currencies on an average fell by 0.26 per cent to 98.13, marking up a weekly slump of more than 1 per cent, while against the safe-haven Yen, US dollar was jolted 1.38 per cent lower to wrap up Friday’s (February 28th) market at 108.07 Yen per US Dollar.

Meanwhile, adding that the US money markets historic slump on coronavirus pandemic fear could even force the Federal Reserve to slash the benchmark interest rate before March 18th’s meet, a chief investment officer for fixed income at Diamond Hill Capital, Bill Zox said on Friday (February 28th), “It’s likely that markets will force the Fed to cut even before the March 18 meeting, and the question is, will that matter? Will that be enough to settle down markets in the near term?