After the US Central Bank, the Fed, the day before, has increased the key interest rate as expected-slightly, benefited mainly the US Dollar. In comparison to many other currencies, the Dollar. The Euro slips in return to the lowest level in almost 14 years.
at noon On Thursday, the price of the community fell currency to 1,0405 US Dollar. The last updated in January 2003. The common currency moved further in the direction of parity with the U.S. currency. The Euro has recently tasted the end of 2002, less than a US Dollar.
The second interest rate increase by the Fed following the financial and economic crisis and the prospect of further interest rate increases in the coming year, but also generated losses for the Japanese Yen, the Swedish Krona and the currencies of emerging countries, such as the South African Rand. Emerging countries are particularly affected by rising interest rates in the United States, because capital in the United States flows.
the Fed signalled more interest rate increases
The Dollar Index, which uses the American currency in relation to other major currencies, rose on Thursday to the highest level since 2003.
At eve had raised the US Central Bank, the Fed, its key interest rate for the second Time after the financial crisis and for the coming year, a higher tightening pace indicated. Instead of the previous two rate hikes, the Fed had signaled in its monetary policy decisions in three interest rate hikes in the coming year.
That the Fed turned again to screw on the Interest that was overdue, said Klaus Wiener, chief economist of the General Association of the German insurance industry. Extremely low interest rates in the financial crisis, were no longer required and with a view to possible inflation threats even dangerous. The problem is the current height of the flight of the Dollar, however, is for the US export industry, because it makes their products abroad more expensive.