Dollar sags vs yen and euro but holds above post-Fed lows

Rupee falls against US dollar
 

The rupee depreciated by 19 paise to 65.86 against the US dollar in early trade on Monday. The domestic currency had closed at 65.67 on Friday, logging its biggest daily gain in two years, following the US Federal Reserve's decision to maintain its ultra-low interest rates for some time. The greenback was seen rising against major global currencies. 

 

The dollar index, which tracks dollar movement against a basket of six major world currencies, stood at 95.12. 

 

In its policy review last week, the US Fed said policymakers continued to see "the risks to the outlook for economic activity and labour market as nearly balanced," but were monitoring 'developments abroad'.

Dollar sags vs yen and euro but holds above post-Fed lows
 

The dollar sagged versus the yen and euro on Monday but held above its recent lows as markets weighed if major central banks might ease policy after the Federal Reserve last week delayed a long-anticipated hike in U.S. interestrates. 

 

Against a basket of six major currencies, the dollar last traded at 95.053, well above Friday's low of 94.063, its lowest level since Aug. 26.The euro edged up 0.2 percent to $1.1321, but remained below Friday's peak of $1.1460. 

READ MORE : FOREX TIPS