US dollar stable against euro after Fed’s meeting

The US dollar on March 17 morning showed stability against the euro, while investors evaluate the results of the meeting of the US Federal Reserve System (FRS), Report informs referring to the auction data.

The euro rate against the dollar remained at the previous close of $1.1032, the dollar against the yen rose to 118.77 yen from 118.72 yen. The dollar index (the exchange rate against a basket of currencies of six countries - the main trading partners of the US) fell by 0.23%, to 98.39 points.

On March 16 evening, following the results of the March meeting, the FRS expectedly raised the discount rate to the level of 0.25-0.5% per annum. This is a positive factor for the national currency.

At the same time, the regulator lowered the US economic growth forecast of 2.8% for the year from the previous estimate of 4%, and raised inflation growth forecast to 4.3% from 2.6%. The Fed explained that the events in Ukraine will in the short term increase inflationary pressure and slow down economic activity in the US.