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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: longnshort who wrote (26365)	2/18/2010 6:05:07 PM
From: DuckTapeSunroof	Respond to of 103300

Dollar jumps after Fed hikes discount rate Feb. 18, 2010, 5:05 p.m. EST By Nick Godt marketwatch.com NEW YORK (MarketWatch) -- The dollar jumped against major counterparts on Thursday, after the Federal Reserve delivered a surprise hike in its discount rate after the close of U.S. markets. The dollar index /quotes/comstock/11j!i:dxy0 (DXY 80.99, +0.02, +0.03%) , which measures the U.S. unit against a basket of six major currencies, stood at 80.90 in recent action, compared with 80.38 ahead of the Fed move. The dollar jumped to 91.65 yen, while the euro slumped to $1.3527. The Fed said its 25-basis-point hike of the discount rate to 0.75% was to encourage banks to borrow more from the private market, and cautioned this was not a tightening of its monetary policy. But the dollar's reaction showed the market had another interpretation, according to Kathy Lien, director of currency research at GFT Forex. "Although the Fed went out of their way to say that this does not equate to a change in their monetary policy outlook, action speaks louder than words," she wrote in a note. "The most important takeaway is that the Fed is beginning to implement an exit strategy which is more than what many of the other central banks are doing and therefore this action will be extremely positive for the dollar."