While the Federal Reserve decided to leave its benchmark rates unchanged, CNBC’s Jim Cramer said Thursday he believes the dollar’s drop is the biggest takeaway from the announcement.
“[The weaker dollar] allows companies that are reporting in the next three weeks to say that currency [headwinds] may be OK year over year beginning in the next quarter, and that’s very important,” Cramer said on “Squawk on the Street.” “If you’re focused on earnings per share for international companies, you had to like what happened.”
Following the release of the central bank’s statement on Wednesday, the dollar index extended its losses to 0.91 percent. The euro also surged to about 1 percent against the greenback following the statement’s release.
In early Thursday trading, the dollar index was down about 0.6 percent, while the euro surged to a one-month high against the dollar.
Cramer added that Fed Chair Janet Yellen also wanted to send a message to investors with the statement and during her news conference. “[The Fed] said ‘Look, we’re still data dependent. All you guys want to do is call when we’re going to give you a Fed rates hike, and we’re not going to play that game,'” he said.