The dollar is falling to a 16-month low against the euro as investors expect the Federal Reserve to keep interest rates near zero even as many U.S. companies are reporting better-than-expected earnings.
|||The dollar is falling to a 16-month low against the euro as investors expect the Federal Reserve to keep interest rates near zero even as many US companies are reporting better-than-expected earnings.
Higher rates tend to support a currency's value because they can generate a bigger return on investments denominated in that currency. The Fed has kept its key rate near zero since December 2008, while most of the world's other central banks are raising interest rates.
In morning trading Thursday in New York, the euro is worth $1.4590, up from $1.4514 late Wednesday. The euro earlier rose as high as $1.4648, its strongest level since December 2009.
The dollar is also weakening against the British pound, Japanese yen and most other major currencies. - Sapa-AP
Source: http://www.iol.co.za/us-dollar-slides-1.1060259
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