After the Fed promised to be careful with further increases in interest rates, the dollar weakened while the Australian dollar responded with an increase in this statement. The Fed left interest rates unchanged and abandoned its promises of "further gradual increases" in interest rates as expected. The dollar fell to a three-week low against other major currencies, and the yield of US Treasury bonds dropped significantly.
Risky assets are growing on this news and the dollar is falling. The Fed may raise interest rates in June but at the moment, it doesn't matter what direction policy is moving in the medium term as the foreign exchange market participants still sell the dollar. The fall of the "American" benefited the euro, relegating concern about weaker growth in the eurozone to the background. The downside of the dovish policy of the Fed is the strengthening of the euro, and the ECB will certainly take note of this, which can also lead to actions to control this process. However, in buying euros, do not forget that the weakening of the economic impulse in the eurozone will put pressure on the currency during most of 2019 and may limit the growth of the euro in the medium term.
The Australian dollar grew by 0.3 percent to 0.7277 dollars after a jump on Wednesday immediately by 1.3 percent, which has every chance to continue the climb. The Swiss franc and yen added about 0.15 percent against the dollar. The Sterling, which is struggling with its own problems regarding Britain's withdrawal from the European Union, rose by 0.2 percent to $1.3157.
