Monetary Easing Is Expected To Increase By &Nbsp; The Dollar Exchange Rate Dropped On Tuesday.

On Tuesday morning, Beijing time, the Central Bank of Japan announced on Tuesday that it lowered the key interest rate and announced that it would set up a new asset purchase fund.

Expectations for the US Federal Reserve to take similar measures are unprecedented. The US dollar fell to its lowest level in 6 months against the euro and fell against the Japanese yen on Tuesday.

Andrew Wilkinson, a senior market analyst for interactive dealers, pointed out: "compared to the US dollar, investors are obviously more interested in holding euros.

The background of this choice is naturally possible quantitative easing measures.

At the close of the foreign exchange market, the US dollar index for tracking six major currencies was 77.81 points, or 0.82%.

The index reported 78.442 points late on Monday and fell to 77.749 on Tuesday, the lowest level since January 2010.

The dollar fell to 83.21 yen on Tuesday, or 0.34%.

After the Bank of Japan issued interest rate decisions, the US dollar jumped against the yen, but failed to break through the key position of 84 yen.

The euro traded at 115.2210 yen, or 0.904%.

The euro rose to $1.3847 on Tuesday, up 1.24%.

The $1.3859 in the euro has been the highest in more than 6 months.

The euro remained at $1.3686 late Monday against the US dollar.

The euro was also supported by manufacturing data from Europe.

Similarly, the UK manufacturing index also rose to the pound rate, rising to 0.51% against the US dollar at 1.5902 US dollars, and 1.1484 euros against the euro, or 0.728%.

Earlier Tuesday, the US Supply Management Association released a report that the US service index was at 9 monthly 53.2, indicating signs of improvement in the US service sector.

The index's August value is 51.5 points.

This result is better than previous market expectations, and the US dollar exchange rate has been briefly supported.

When the index exceeds 50, the service industry has an overall expansion trend.

The euro and Sterling continued to rise in favour of the good news of the September UK index of service purchasing managers.

Economists pointed out that many data showed that the current situation has improved, and the worries of double dip recession have been eliminated.

But these data also indicate the continuing weakness of growth.

The Markit composite purchasing managers index of 16 countries in the euro area showed that industry activity slowed down significantly in September compared to August.

Multiple data made market investors turn their attention to the next steps of the European Central Bank and the Bank of England.

The two central banks are scheduled to hold their respective decision-making meetings on Thursday.

Barclays Capital analyst A Lope Chatterjee said, "in addition to the European Central Bank, the central bank may choose to relax monetary policy.

The ECB has been emphasizing the exit strategy, so the euro has not been the biggest beneficiary.

On the other hand, rating agency Moodie Investor Service placed Ireland's Aa2 credit rating on the watch list and indicated the possibility of downgrading the rating.

The decision also put pressure on the euro.

Analysts pointed out that if Moodie decides to make a downgrade, the new rating will be consistent with the ratings of Fitch and standard & amp; poor rating agencies.

The Reserve Bank of Australia announced in an Asian trading session on Tuesday that its current interest rate remained unchanged at 4.5%.

The Australian dollar fell against the US dollar after the decision was made. However, due to the weakness of the dollar, it ended up at 97.15 cents, up 0.43%.