The dollar has risen against all major currencies this year, buoyed by big rate hikes aimed at stemming price rises.but recent colder-than-expected inflation data has prompted investors to curb bets on further increases.
According to the Fed minutes, earlier this month Federal Reserve officials agreed that smaller interest rate hikes should happen soon. as they assess the impact the policy is having on the economy, meeting minutes released Wednesday show.
Investors will scrutinize the minutes of the Fed’s November meeting for clues on the rate outlook. “Right now, currency traders are probably torn between the continued aggressive comments from Fed members and the prospect of what they will do in 2023“said currency analysts from commerzbank in a note.
The New Zealand dollar for its part gained as much as 0.7%, approaching a three-month high, after the country’s central bank raised rates by a record amount, despite warning that the economy could spend an entire year in recession. The kiwi rose 0.6% to $0.6184.
The euro rose 0.9% to $1.0395following new data showing that the decline in business activity in the euro zone decreased slightly in November.
The pound sterling rose 1.4% to $1.2050after an independent survey showed that British economic activity fell in November at its fastest pace in almost two years.
Source: Ambito
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