Dollar after the FOMC
FXstreet.com (Buenos Aires) - By the end of a choppy session, minutes of last FOMC meeting, showed American policy-makers decide to buy an important amount of U.S. Treasury and mortgage debt to halt the slide, to halt the worsening recession. "The deterioration in labor market conditions was rapid in recent months, with the steep job losses across nearly all sectors. Industrial production continued to contract rapidly as firms responded to the falloff in demand and the buildup of some inventory overhangs," the FED said in the minutes. This lead FED to downgrade GDP projections for 2009 and 2010, and delay the economic recovery until next year, instead of the second half of 2009.
Minutes made Wall Street retreated after a positive start, and DJIA close the day gaining 47 points, or 0.6%, while other indexes at least pare gains on renewed worries over the financial sector and the global economic downturn. Dollar end the day mixed, yet slightly positive across the board, except for Japanese Yen, that broke under Y100.00 and extend the correction as far as Y99.31, now at Y99.77.