(TruthSeekerDaily) The dollar plunged to a seven-month low on Wednesday after the Federal Reserve said that it would continue to buy $85 billion a month in bonds to continue stimulating the economy. This breaking news shocked investors, the stock markets jumped after the 2 p.m. announcement, with the Standard & Poor’s 500-stock index touching a record high and the Dow Jones industrial average ahead more than 150 points.
- Futures prices suggested traders now see a 52 percent chance of a rate hike in January 2015, according to CME Group’s Fed Watch. Before the statement, traders were betting that the Fed could raise rates as early as its October 2014 meeting.
- The dollar index fell as low as 80.203 .DXY, the lowest since mid-February. It was last at 80.270, down 1.1 percent.
- The euro climbed to a seven-month peak of $1.3511. It last changed hands at $1.3401, up 1.1 percent.
- Analysts at Morgan Stanley expect the euro to rise against the dollar in the near term, possibly hitting $1.36.
- Against the yen, the dollar fell to 97.85 yen, a three-week low and by late afternoon trading, it was down 1.0 percent at 98.14.
- The U.S. dollar also dropped to a three-month low versus the Australian dollar and the Swiss franc.
Q: In your opinion, when do you think the dollar will crash in 2013?