Khaberni - The dollar rose today, Thursday, to its highest level in three months, driven by the yen's decline and the Federal Reserve's inclination to back away from further interest rate cuts this year.
The spot dollar index climbed by 0.6 percent, registering its highest level since August 1st, before it pared some of its gains.
Afterward, the Federal Reserve cut the interest rate by a quarter of a percentage point as expected, according to the financial website Bloomberg.
The dollar is heading towards making gains for the second month this year, as the absence of official data due to the U.S. government shutdown has made the economic outlook and the direction of the Federal Reserve’s monetary policy more obscure.
The euro declined by 0.2 percent against the dollar, and all the Group of Ten currencies fell against the U.S. currency.
After the Bank of Japan left the key interest rate unchanged, the yen fell to its weakest level since February, trading at 154.14 yen to the dollar.
