US dollar rises after sharp loss

New York, March 19 (IANS) The US dollar increased against other major currencies after declining for two consecutive sessions on the Federal Reserve statement.

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In late New York trading on Friday, the euro fell to $1.1270 from $1.1318 of the previous session, and the British pound dropped to $1.4480 from $1.4486.

The Australian dollar went down to $0.7602 from $0.7651.

The dollar bought 111.57 Japanese yen, higher than 111.43 yen of the previous session.

The dollar increased to 0.9692 Swiss francs from 0.9672 Swiss francs, and it inched up to 1.3020 Canadian dollars from 1.2996 Canadian dollars.

In a statement released after the Fed’s two-day monetary policy meeting on Wednesday, Fed officials decided to maintain the target range for the federal funds rate at 0.25 to 0.5 percent, noting that “global economic and financial developments continue to pose risks” to the US economy.

The dollar index, which measures the greenback against six major peers, was down 0.83 percent and 1.17 percent in late trading on Wednesday and Thursday respectively.

The greenback recovered on Friday with the dollar index gaining 0.32 percent at 95.065 in late trading.

Gold down on stronger US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell as the US dollar showed strength.

The most active gold contract for April delivery on Friday fell $10.7, or 0.85 percent, to settle at $1,254.30 per ounce, Xinhua news agency reported.

Gold was put under further pressure as US equities were on track for another weekly gain.

Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when US equities post gains.

Silver for May delivery fell 22.2 cents, or 1.38 percent, to close at $15.811 per ounce.

Platinum for April delivery dropped $18.6, or 1.88 percent, to close at $970.50 per ounce.

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