Dutch poll influenced the euro; Dollar stumbles

Dutch poll

The euro was on its positive stance on Thursday later when Dutch election results to a pleasant victory by the prime minister above his far-right rival. Meanwhile the dollar tumbles at a one-month decline after the Federal Reserve looked dovish than expected on upcoming interest rate hikes.

The euro was strengthened as exit polls displayed the Netherlands’ centre-right Prime Minister Mark Rutte thoroughly saw off a challenge by anti-EU and anti-Islam by Geert Wilders in an election on Wednesday, lessening concerns towards Holland deciding to leave the European Union.

The greenback jumped by $1.00746 on Thursday right after rising 1.2 percent overnight. The U.S. dollar index declined 0.2 percent at 100.560 against its major opposing currencies. It slipped more than 1 percent from the latest day to touch 100.490.

The dollar took a striking after the Federal Reserve closed its policy meeting for two-days on Wednesday by lifting interest’s rates as projected but stranded to expectations of a total of three rate hikes this year. However, most traders are speculating that Fed would lift rates four times this 2017 as the economy energizes.

U.S. treasury yields also declined as a feedback to Federal Reserve’s rate hike for the rest of 2017, pushing the dollar to drop more than 1 percent against the yen.

The yen displayed a minimal feedback after the bank of Japan stands relevant on monetary policy, as the central bank’s decision was well projected. Investors now are keeping an eye on BOJ Governor Haruhiko Kuroda's post conference at 0630 GMT for signs on the central bank’s stance if it will pull back its vast stimulus program.


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