June Forex Trading Update (week 3)

The dollar dropped to a one-month low against its major peers after the Federal Reserve said it will keep interest rates near zero for a “considerable time.”

The U.S. currency fell for a second day against the euro, the first back-to-back declines this month, while the pound climbed to a five-year high as the Federal Open Market Committee cut the outlook for economic growth at Wednesday’s policy meeting.

Bank of England Chief Economist Andrew Haldane said the choice of when to raise interest rates is “a difficult one.” Bank Of England Governor Mark Carney said on June 12 that the first interest-rate increase “could happen sooner than markets currently expect.” Sterling has risen against all of its developed-country peers in the past month as investors pushed forward their expectations of when policy makers will raise the main interest rate.

The pound advanced 0.3 percent to $1.7036, reaching the highest since August 2009.