Dollar falls on expectations of US Federal Reserve's monetary policy easing

The US dollar fell against other global currencies this morning, as analysts expect the US Federal Reserve to pursue an accommodative monetary policy and lower its key interest rate, Report informs referring to trading data.

The euro rose to $1.1619 against the dollar, up from $1.1608 at the previous close. The dollar fell to 151.24 yen against the yen, down from the previous close of 151.85 yen. The dollar index (the exchange rate against a basket of currencies of six US trading partners) fell by 0.16% to 98.9 points.

Traditionally, the value of the national currency rises with tight monetary policy and declines with loose policy.

Following its September meeting, the US Federal Reserve lowered its key interest rate for the first time since the end of last year – by 0.25 percentage points, to 4-4.25% per annum. 95.7% of analysts expect a further reduction in the base rate in October by 0.25 percentage points - to 3.75-4%.