Dollar stabilizes and Yen fluctuates as traders evaluate US interest outlook

The dollar stabilized slightly on Wednesday, but remained not far from the lowest level in two and a half months against a basket of currencies after the statement of the latest Federal Reserve meeting did not indicate anything significant to rule out expectations that the interest rate hike cycle was over.

The US Central Bank meeting statement revealed that the bank will proceed “cautiously” and that “all parties have concluded that it is appropriate to maintain” the current status of interest rates.

The dollar index, which measures the performance of the US currency against a basket of currencies, rose 0.12 percent to 103.65, only slightly away from the lowest level in two and a half months of 103.17, which it reached on Tuesday.

The index fell by about three percent in November and is heading towards its worst monthly performance in a year.

In its latest transactions, the euro recorded $1.0908 after rising to its highest level against the dollar since mid-August to 1.09655 on Tuesday.

The pound sterling settled at $1.2527, not far from the highest level in two months at $1.2558, which it touched in the evening.

The Japanese yen fell 0.16 percent to 148.65 against the dollar as European transactions neared the start, after reaching a two-month high of 147.155 against the dollar on Tuesday.

The yen rose 2 percent against the dollar in November, but is still down 12 percent since the beginning of the year.