US dollar hits 5-week low on US Fed cautionhttps://indianexpress.com/article/news-archive/web/us-dollar-hits-5week-low-on-us-fed-caution/

US dollar hits 5-week low on US Fed caution

The drop in the dollar pulled gold lower,though bullion was still on track for a third week of gains.

The dollar fell to a five-week low on Friday on expectations that the US Federal Reserve at its upcoming policy meeting will underline its intention to keep interest rates low for a long time,while stocks fell as investors took profits as they await new signals on the economy’s path.

The drop in the dollar pulled gold lower,though bullion was still on track for a third week of gains. But oil,which typically benefits from a weaker dollar,declined on worries about falling demand in China. The dollar has tumbled this month as Fed officials moved to soothe concerns about its stimulus withdrawal plans,while equities markets have recovered.

Setting the greenback on its latest fall was a Wall Street Journal report published online Thursday that the Fed may debate tweaking its forward guidance message to hammer home its signal that it will not be raising rates any time soon.