The American dollar was not too strong on Wednesday. This was as there was little hopes of the federal reserve surprising the market with interest rate hike hints. As we drag closer to the middle of the year, a lot of traders are still expecting interest rate hike by June. Such hopes had helped to reduce the losses of the dollar on Wednesday. The euro went up by about 0.2% against the American dollar bringing the pair EURUSD to 1.1321 as the market greatly awaits the meeting of the US central bank on interest rate setting. Against the yen, the American dollar had declined to about 111.25 yen which is about a fall of 0.06%. Majority of traders expect the Federal Reserve not to change rates. This is as the federal reserve is more concerned with the effect of a weakening global economy on the US economy. Should the federal reserve see less risk in increasing rates despite unimpressive global growth, then we could see interest rates hike possibly around June. Yet Janet Yellen Fed Chair had informed reporters following the most recent policy meeting in March of the need for caution; advising against rushing to raise interest rates without due consideration of the effect of the global economy.
