The US Dollar took a hit towards the end of this week as investors evaluated the recent move by the Federal Reserve’s stance on interest rates, leaving them unchanged. Currency investors have shifted towards economies with money-tightening policies and showing higher global economic market strength, in particular the euro.
Following the fed’s announcements earlier this week, the dollar index, tracking USD greenback against a half dozen other major currencies, spiked briefly, rising in overnight trading in the Asian markets.
Falling 3.25 percent in January, the largest loss since the end of first quarter in 2016, the USD rose slightly on announcements from the Fed that anticipated rises in inflation, generating investor optimism that additional hikes in interest rates will follow later in the year.
The dollar did show modest gains against the Japanese Yen, rising to 109.25 yen/USD this week.
The euro showed consistent increases, following optimism on the strength of the economies of the nations that share the currency.
The euro rose against the dollar by a little more than 3/4 of a percent climbing to $1.25 USD last month. The increase expressed enthusiasm that the Central European Bank would start normalizing its monetary policy within 2018.
In the crypto currency markets, bitcoin along with several other digital currencies including ethereum and litecoin continued to experience declines in value, with bitcoin hitting its lowest price against the USD since November of last year. The intra day price range for bitcoin was reported as $8685 on February 1st, down considerably from more recent 52 week high at just over $19,800. Market sentiment within the crypto community still shows that a majority of investors continue to maintain long positions in bitcoin, optimistic about its future prospects.
About Jordan Lindsey
Lindsey has served as CEO of Prive Information Services, located in the San Francisco Bay Area for 6 years. He has also been an advisor for Califorina-based Energia Global.
In his earlier roles, Lindsey founded JCL Capital, launched in 2005 and still in operation. He served as the Vice President of Maximum Capital Management, Inc., in the early 2000’s.