Summary US dollar advanced against euro and yen, while Swiss franc tumbled after negative interest rates.
NEW YORK (AFP) - The US dollar Thursday advanced against the euro and the yen, while the Swiss franc tumbled after Switzerland s central bank introduced negative interest rates.
The dollar again forged higher against the euro and the yen following Wednesday s Federal Reserve announcement that kept interest rates low and said the US central bank would be "patient in beginning to normalize the stance of monetary policy."
The Fed s announcement did not accelerate the timing to raise interest rates, expected in the middle of 2015.
But the statement "did nevertheless signal a steady and gradual move toward more normal monetary policy, which continues to contrast the outlook for additional monetary stimulus in the euro zone and Japan," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
Meanwhile, the Swiss National Bank said it will impose a rate of -0.25 percent on certain bank deposits on January 22, with the aim of pushing the target range of Switzerland s benchmark interest rate into negative territory.
Analysts said the move was geared at avoiding a big run-up of the Swiss franc that could depress exports. It comes as European Central Bank officials hint at possible stimulus in early 2015.
"The SNB s move appears to be a pre-emptive step to account for the possibility of announcement of further monetary policy easing by the ECB and a potential increase in demand for safe haven assets on the back of euro area worries," said a report by UniCredit.
