On Friday, March 7, 2008, the US dollar was exported from all the waves when the Federal Reserve increased liquidity in the financial system. This flexible injection has increased the estimation, in short periods, the Federal Reserve will not reduce the interest rates at a lower rate, even the recent reports show that in February this year, in the US service sector The agreement has been made.
In order to reduce the pressure of liquid intensity in the US financial system, the Federal Reserve announced a series of activities, such as the term re-purchased, amounted to $ 10 billion. According to Federer Query, Head of BMO Capital Markets in Canada, Flexible injection by the Federal Reserve is the main reason for the US dollar revolt compared to other major currencies. According to other analysts, the US dollar declined due to the constant structure and profit from the investors for continuous continuous 3 days after the Euro price.
The latest liquid rate by the Federal Reserve is in the benefit of increasing interest rates, as analysts believe that the Federal Reserve on March 18, 2008, as expected as the expected 75 basis points in the next Federal Reserve meeting. Can not exceed the price range. Currently the Federal Funding Rate is 3.0%, 2.25% decrease after the end of the third quarter of 2007.