Dollar Index hits four month low
The Dollar Index is at its lowest point in four months.
The Dollar Index has dropped to its lowest point in the last four months.
Speculation that the Federal Reserve is not going to raise lending rates proved to be damaging to the index this week, reports Bloomberg.
The dollar slipped by 0.7 per cent against the yen yesterday (June 13th), which means it has fallen by 3.5 per cent compared to its rival in the last two weeks.
Douglas Borthwick, a managing director and head of foreign exchange at Chapdelaine FX in New York, said: "The market got ahead of itself in early June, looking for ECB interest rate cuts and US Fed tapering."
He added this supports the euro against the dollar and is also good news for the yen compared with the dollar as well.
Shogo Maeda, head of Japanese equities at Schroders, said last month that the weakness of the yen is going to lead to Japanese companies being able to announce strong profits in the coming weeks and months.
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