On Saturday, Cleveland Federal Reserve Bank President Sandra Pianalto shared that with so many diverse variables affecting the US Dollar, it is difficult to know, as of now, where the currency is headed.

The thoughts were shared by the Fed Chief while he was taking questions after addressing a group of high school students. Mr. Pianalto, who is a voting member of the agency's policy panel this year, was asked what policies were being put in place to safeguard the American Dollar's value.

Mr. Pianalto then shared that the Dollar policy was currently not under the preview of the Federal Reserve, while stressing, "The value of the dollar is set by the markets and there are so many variables. It is just very hard to know what direction it is going to go".

The American Dollar policy is presently directed by the Treasury Department.

When questioned about the Fed's move to hike the interest rate charged to banks for emergency loans, the President said that it was a result of steadily improving market conditions.