The Federal reserve’s decision to keep the interest rates at 5.25 percent , was not a surprise at all , but did not make the investors feel secured because it’s statement did not show any relief of any inflationary fears. Looking at this and also the report that the US economy has even more slowed down within the last three months and this brought down dollar against the single most currency of Europe , the Euro.
According to analysts the dollar will remain under pressure after the data , the rate seems to have peaked and a cut is likely next year. The dollar traded at $1.2677 per Euro in London today morning.
Even the housing market has cooled down due to slower economic growth. Therefore, all in all a bad news for dollar and I feel that dollar will continue to go down against the Euro.
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