CurrencyIndex.co.uk

Foreign Currency Exchange Specialists

Thursday, 19 March 2009

Dollar weaker on Fed cash injection

The dollar has weakened today, making money transfers to the USA cheaper, after the surprise news that the Federal Reserve has injected $1.2tn into the US economy to stimulate lending.

While this is a positive action, the creation of more dollars (similar to the Bank of England's quantitative easing 2 weeks ago) is that the value of the currency is actually decreased.

Therefore exchange rates have got better, and a pound buys around 3c more today than it would have done yesterday.

Currency companies can help if you need to send or receive dollars from abroad.

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