Currency – The dollar to a low of one month after the Fed

© Reuters. The dollar to a low of one month after the Fed – The dollar declined to a lowest in a month against a basket of currencies on Thursday after the Federal Reserve has raised its interest rates, but has maintained his forecast for two further increases this year, while trade tensions were also weighed.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.26% to 89,06 to 03h52 (07h52 GMT), its lowest level since February 19.

The index was down 0.74% on Wednesday, its biggest decline since mid-January.

Some investors expected that the Fed provides for three further rate increases this year, so the decision to stick to two further increases has been considered by some as less hawkish than expected.

The policy makers of the Fed have raised their forecast to 2019 to three increases compared with both the December forecast and have also indicated that they could increase rates at a pace that is slightly more aggressive in the coming years to prevent overheating of the economy.

The dollar has also experienced downward pressure as the threat of a trade war conducted by the United States threatened the markets.

The president of the United States, Donald Trump, had to disclose up to $ 60 billion in new tariffs on chinese imports later in the day. The administration Trump has already imposed duties on imports of steel and aluminum of the United States at the beginning of this month.

Investors fear that major trading partners of the United States to respond with similar measures and do not threaten the global growth outlook.

The euro has reached highs of a week against the u.s. currency, with the EUR / USD up 0.33% to 1,2379.

The dollar was close to two-week low against the yen, with USD / JPY down 0.31% 105.7.

The pound has reached highs of one and a half months against the dollar, with GBP / USD rising 0.17% to 1,4167.

The pound remained supported after strong data on the growth of wages in the Uk have confirmed on Wednesday that the Bank of England could announce an interest rate rise in may after its policy meeting later in the day.

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