US Dollar Interest Rate

The Federal Reserve will be among the last major central banks to raise interest rates, putting a recovery of the dollar at risk.
Foreign investors will be reluctant to invest more in the U.S., and the government deficit will keep widening.

Selling of US Dollar

Traders sold off the dollar sharply following the FOMC's monetary policy announcement, in which the Fed held interest rates unchanged by unanimous decision at 0.0%-0.25%. The greenback relinquished the 1.48-level against the euro and slumped to its session lows versus the British pound at 1.6467.

Unemployment Benefits Dropped

U.S. applications for unemployment benefits dropped by 12,000 to 545,000 in the week ended Sept. 12, from a revised 557,000 the week before, Labor Department data showed today. Economists forecast weekly claims would rise to 557,000 from a previously reported 550,000.

Dollar Fell

Sept. 16 (Bloomberg) -- The yen and dollar fell against most of their major counterparts as an increase in America’s industrial output last month encouraged investors to sell the U.S. and Japanese currencies and buy higher-yielding assets.