Mar 20 2015
Rate Range Projection by Bank
Next week 119.50- 121.50
Next 3 months 115.00 - 127.00
On Friday the U.S. dollar fell sharply and posted its biggest weekly decline against the euro in more than three years. The NASDAQ posted its highest close in 15 years on Friday and had a weekly gain of 3.2 percent.
The Fed appeared to argue against an interest rate hike in June. The U.S. dollar index is up more than 20 percent since mid-2014. The dollar's strength for some time buoyed U.S. stocks because it served as evidence of a strengthening economy, but lately there have been concerns of the impact it could have on the profits of U.S. multinational companies. Riskier assets like equities had a strong week in general, largely driven by the Federal Reserve's policy statement on Wednesday, which struck a more dovish tone than investors had expected. Robert Lutts, president, chief investment officer at Cabot Money Management in Salem, Massachusetts said "The Federal Reserve's created a situation where there's very little alternative to equities, so the path of least resistance for stocks will be up for a period of time”. The world's largest sportswear maker and a Dow component, jumped 3.7 percent to $101.98 a day after reporting strong quarterly results though it warned about the impact of the dollar on the current quarter.