Falling

The US dollar depreciated sharply against other major currencies after Fed has indicated more restrained than initial estimates tightening of US interest rates this year. After yesterday's meeting  Federal Reserve presented new forecasts of central bankers, according to which the US base rate will probably be increased only twice by the end of 2016 against the previous forecast in December for an expected fourfold lifting of the interest rates.

This resulted in aggressive sales of "greenback" as only within the trading today the US dollar index fell about 1.5 percent to its lowest level since October 2015.

Since yesterday, the euro rose nearly 3 cents to 5-week high of $ 1.1342 with a view to its important 4-month high of $ 1.1376 nailed on 11 February, while the British pound reached a new 4-week high of $ 1.4501.

Meanwhile, the US currency fell nearly 2% to a 17-month low at 110.67 yen (the lowest level since November 2014) before it bounced back to 112.00 level, after rumors that the Bank of Japan has conducted a disguised intervention in the currency market through several local banks intending to restrict the appreciation of the national currency. This seems to suggest that the area around 111.00  is perhaps the strongest level of the Japanese currency, which can not be tolerated from BoJ.

Falling of US currency is a fact despite today’s series of stronger US economic data. 

But is this a shaft of light that shows the way of US economy’s recovery?