The dollar jumps after the Fed holds rates

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Investing.com

The US dollar index is stronger on Fed day.

The index is up 0.2% at 97.28 after the Federal Open Market Committee left the benchmark fed funds rate unchanged in a 0.25% to 0.50% range – as expected.

“Near-term risks to the economic outlook have diminished,” the Fed’s policy statement said on Wednesday.

“On balance, payrolls and other labor market indicators point to some increase in labor utilization in recent months,” the statement added.

As for the rest of the world, here’s the scoreboard as of 2:31 p.m. ET:

    TheJapanese yenis weaker by 0.9% at 105.61 after Japanese Prime Minister Shinzo Abe unveiled an economic stimulus package worth more than 28 trillion yen ($266 billion). AFP reports that Abe didn’t give too many details about the package other than that it would includeabout 13 trillion yen in fiscal spending. Separately, the Bank of Japan meets on Friday.TheBritish poundis stronger by 0.2% at 1.3154 against the dollar after data from the Office for National Statistics showed that the UK economy acceleratedahead of the Brexit vote, growing at a 0.6% clip in the second quarter, above the 0.5% gain economists were expecting. Still, Pantheon Macroeconomics’chief UK economist, Samuel Tombs, warned: “the second quarter’s GDP figure is not as robust as it seems at face value and it won’t hold back the MPC from cutting interest rates next week.”TheRussian rubleis down by 0.4% at 66.1743 per dollar, after dipping by about 0.9% on Tuesday. Notably, although the ruble has fallen against the dollar over the past month, it hasn’t completely been in line with crude prices. Andlast week, Russian President Vladimir Putin happened to tell his prime minister, Dmitry Medvedev, to keep an eye on the currency’s appreciation.Theeuro is little changed at 1.0998 against the dollar.