Dollar withdraws from Fed rally

The rally that was caused by the Fed decision to raise the interest rate but the new week that brought more confidence in the stability of this situation, stopped...
FILE - This June 19, 2015, file photo shows the Marriner S. Eccles Federal Reserve Board Building in Washington. At some point in the coming months, the Federal Reserve is widely expected to resume raising interest rates. On Wednesday, Feb. 1, 2017, the Fed will likely end its latest policy meeting with an announcement that it's keeping its benchmark rate unchanged at a time of steady economic gains but also heightened uncertainty surrounding the new Trump administration. (AP Photo/Andrew Harnik, File)

The rally that was caused by the Fed decision to raise the interest rate but the new week that brought more confidence in the stability of this situation, stopped dollar’s pace.

During the European financial markets work, dollar went down slightly. Last week investors took an advantage of the buck’s rally and now the events develop slowly.

Geopolitical news alarmed investors. The North Korean decision to land their ballistic missiles in the waters of Japan made a lot of pressure onto the currency, while investors were looking for the new safe-haven. Japanese money eased up.

Janet Yellen, the Chair of the Fed, has announced this Friday that Bank is ready to raise benchmark of interest rates on March, and markets accepted the news as a done deal for the new hike. Right now their main interest lays in the threshold for this hike.

Last Friday dollar went down, while investors were taking their profit from the 4th week of gain in a row against the main basket of world currencies. This Monday it went down 0.3 percent to the 101.22.

The strategist Valentin Marinov says that markets concern about the hawkish start for the interest rate hike. Fed will be able to change the rate during 3 or 4 times this year.

Today the USA currency was equal to the 113.68 Japanese yen. Global strategists believe that while North Korea usually conducts such tests of their missiles few times in a year, it is hard to predict the answer of the USA new president for such tests.

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