The dollar held at more than one-week lows on Thursday, December 14, after the U.S. central bank kept its economic forecasts unchanged with investors expecting more losses if the European Central Bank outlines a more optimistic outlook on the economy.
The dollar plunged 0.6 percent against a trade-weighted basket of currencies after the decision on Wednesday, erasing a large chunk of its near 2 percent rise in the last three weeks. On Thursday, it was broadly flat and nursing losses at 93.46.
Against the yen, the dollar inched up 0.1 percent to 112.69 yen, after sliding 0.9 percent on Wednesday and having retreated from Tuesday’s four-week high of 113.75 yen.
Sterling trimmed earlier gains and was broadly flat on the day after the Bank of England stuck to its view that interest rates were likely to rise gradually.
The pound was flat at $1.3425 after the BoE said last week’s breakthrough in Brexit talks has reduced the risk of Britain leaving the European Union in a disorderly way and may boost economic confidence, but still said only ”modest increases in (the) Bank Rate would be warranted over the next few years.
