Dollar Drops Versus Euro as Fed Signals Rates Will Stay Low

(BLOOMBERG) — The dollar dropped versus the euro as the Federal Reserve signaled it will keep borrowing costs at record lows as it assesses a means of draining cash from the U.S. financial system.

“They were pretty clear that this doesn’t signal they are going to tighten sooner,” said Fabian Eliasson, head of U.S. currency sales at Mizuho Corporate Bank Ltd. in New York. The dollar weakness is “a continuation of the interest-rate view,” he said.

via Dollar Drops Versus Euro as Fed Signals Rates Will Stay Low – Bloomberg.com.

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