Fed’s decision brought no change

The dollar slipped against the Euro one more time when the Federal Reserve decided not to alter the interest rates in the U.S currency market because the Fed stated that the inflation is a threat to the U.S economy and there may be some risks related to inflation which may affect the dollar more in particular.

Owing to this fact, that the U.S dollar is slithering everyday most the people got used of listening to the dollar’s decline, so this news didn’t shock most of them. But some investors, who had a positive attitude towards the U.S currency market, were disappointed when they heard about the Fed’s decision.

The dollar was 0.2% low against the Euro yesterday. The stock market also did not do well yesterday. The S&P500 was low, the Dow Jones was low, the Nasdaq was also low. The U.S government report showed that the U.S trade deficit was $58.9bn in October is the lowest level since 14 months. But though the deficit became low showing a positive sign for the U.S trade market, but it failed to produce gains when the deficit was low.

Inflation remains as a major threat to U.S economy, so one cannot anticipate of Federal Reserve changing the interest rates as of now.