Thursday, June 25, 2009

The dollar rose after the publication of FOMC statement

As a result of the completion of 2-day FOMC meeting, it was decided to maintain the rate on federal funds in the trust range from 0 to 0.25%. The decision was taken unanimously by all 10 members of meeting. Also, the Committee on Operations on the open market the U.S. Federal Reserve said that in light of the economic situation in the purchase of the assets would not be any changes. As a term describing the state of the economy, was to use the word "slowdown". Instruction FOMC said that the economy for some time will remain weak. There are signs of gradual recovery. Inflation for some time will remain stable. On the risks of deflation in the instructions are not mentioned.

The dollar rose against the euro after the publication of statements by FOMC. In general, instruction in line with market expectations. However, deleting the phrase on the deflationary risks from the current instruction had a positive impact on growth in the U.S., because market participants expect that the increase in energy prices will lead to the end of year increase inflationary risks and compel the Fed to make rate increase.

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