US dollar declines
The FOMC opted to leave current interest rates unchanged at 0.25% in the US, stating that they may cease quantitative easing by the end of 2009 though interest rates would likely remain low for an "extended period". This was interpreted by markets as a positive sign, taken in combination with news from the eurozone that the pace of recession there is easing.
US consumer confidence has jumped to a 22-month high on the back of the news, with commodity prices climbing on speculation of increased demand. However the US budget deficit has also climbed to USD1.27 trillion, the highest on record, after the government spent USD252 billion on economic stimulus.
US dollar currency rates have fallen as global optimism over economic recovery rises. The USD is currently valued at EUR0.70 and GBP0.60.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.