Daily Foreign Exchange Market Summary 05/11/2009

05 November 2009 @ 01:33 pm EDT

The US dollar traded lower vs. most major currencies as an increase in equities and positive economic data increased investor risk-appetite for higher-yielding currencies.  Yesterday, the Federal Reserve kept interest rates at a record low range of zero to 0.25%.  The Fed also repeated its intention to keep interest rates "exceptionally low" for "an extended period" as long as inflation expectations are stable and unemployment fails to decline.  Nonfarm productivity increased 9.5% in the third quarter, higher than forecast 6.5%.  Initial jobless claims came in less than expected at 512,000 and continuing claims also beat forecasts with 5,749,000 claims.

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