Global Forex Market
The US dollar traded sideways for the week albeit closing marginally higher by 0.02% to 98.272.
The US dollar started the week on a strong note due to safe-haven play following drone attacks in Saudi Arabia. However, the dollar pared gains after Saudi calmed the situation, citing it is manageable and informing other Opec members not to respond with extra output.Nevertheless, the dollar’s strength re-emerged mid-week due to lack of dovishness in the FOMC meeting despite the Fed slashing its interest rate by 25bps to 1.75%–2%, in line with expectations. The Federal Reserve jumped into financial markets this week for the first time since 2008, injecting a total of US$203bil as of Thursday into the repo markets in an attempt to ease funding pressure in the money market.