The Fed also stated that had taken a turn in the fight against inflationhis first explicit acknowledgment that price rise is slowing downwhich underpins market expectations that eThe end of the rate hike campaign of the US central bank is near and that cuts could come later.
He dollar index, that compares the greenback with a basket of six outstanding currencies, lost more than 1% on the eve, down to a new nine-month low. This Thursday it climbs 0.6% to 101,657 after having reached its lowest value since April last year at the opening of the wheel.
The pound sterlingwhich advanced 0.47% on Wednesday, loses 0.7% and operates at $1.2301, and the dollar recedes compared to his Japanese counterpart, 128.07 yenits minimum in two weeks.
The euro hit $1.1034 in Asian trade, its highest level since April 4, after gaining 1.2% on Wednesday. In its last quote, it loses 0.7% and operates at $1.0911.
The sharp overnight drop in dollar came after Fed Chairman Jerome Powellsaid in a press conference after the meeting that “the disinflationary process has begun“, although he also noted that rates will continue to rise and that there are no cuts in sight.
“It was kind of a relief… that there was nothing that really seriously challenged the prevailing view of the market,” he said. ray attrill, of the National Australia Bank (NAB) in dialogue with Reuters. “(Powell) said that rates are going to have to be tight for some time, but that doesn’t deter the market from saying some time might be six months instead of two years.”
He European Central Bank (ECB) raised its official interest rates on Thursday in 0.50 percentage pointsjust as he had done in December, and took them to the range of 2.5% and 3.5%. The head of the entity, Christine Lagarde, anticipated, contrary to what was expected, that the same decision will not be made in March.
The YoY inflation in European countries that adhere to the common currency fell for the third consecutive month and closed at 8.5% in Januarysupported by a slowdown in energy pricesthe European statistics agency Eurostat announced on Wednesday.
The Bank of England (BoE) raised the base interest rate to 4% on Thursdaythe highest level in 14 years, which represents the tenth consecutive increase in borrowing costs with the aim of continuing to contain inflation.
Source: Ambito
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