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Currencies Change In Speculation Of Fed Meeting

CXI October 28th, 2015

 

The Fed rate might increase at today’s meeting at 4 percent and at about 35 percent by year end, as policy makers wrestle with slower growth in China and weak commodity prices that have weighed on inflation.

Sweden’s central bank stepped up quantitative easing to keep pace with euro zone stimulus, while a European Central Bank official repeated that further measures may be needed to revive inflation.

The Bloomberg Dollar Spot Index slipped 0.2 percent before the Fed meeting, with traders prepared to scrutinize the central bank’s statement for clues on the timing of the first rate increase in nearly a decade.

The U.S. currency is expected to climb against all 16 of its major peers except the pound by the first quarter of 2016, according to strategists surveyed by Bloomberg.

The yen was little changed at 120.38. The currency has strengthened this week as investors opt for its relative safety. Economists are split on whether the Bank of Japan will boost already record stimulus at an Oct. 30 meeting.

The Swedish krona gained 0.7 percent against the dollar, as the Swedish National Bank expanded a bond purchase plan for the fourth time since February and kept the benchmark repo rate at minus 0.35 percent.

Australia’s dollar slid versus every major currency after data Wednesday showed core inflation unexpectedly slowed to the lower end of the central bank’s target band.

The New Zealand dollar also declined before the nation’s central bank sets its policy rate on Thursday in Wellington.

 

About Currency Exchange International
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 80 foreign currencies, multi-currency cash passport’s and traveler’s cheques. For financial institutions, our services include the exchange of foreign currencies, international wire transfers, purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com.
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