He dollar barely climbs this Thursday, March 23, although at the downward opening it was oriented to racking up his longest losing streak in two and a half yearsAfter the Federal Reserve seems to be about to terminate interest rate hikesMeanwhile he Swiss franc it was advancing after the Swiss central bank went ahead with another hike.
The Fed raised its reference rate by 25 basis pointsas expected, but dropped language about the need for “continuous uploads” in favor of “some additional climbs”while watching the faltering confidence in banks affect the economy.
Futures involve about a 50% chance of a new rise of a quarter pointin contrast with Europewhere markets expect close to 50 basis points additional hardening.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
The difference has made the euro soars to a seven-week highat $1.0930, after also rising for six consecutive sessions.
The Fed’s change of tone makes it less likely that markets will worry again that strong economic data will drive rates up, he said Brian Daingerfield, from Nat West Markets. “From a currency standpoint, we think that calls for further dollar weaknessas the Fed’s cycle ceiling has clearly come down,” he said.
He dollar indexwhich compares the greenback to a basket of six major currencies, is up 0.04%, after opening 0.2% lower and heading for its sixth straight daily decline, its longest streak since September 2021. Thus, the dollar reaches the 102,005 unitsits lowest value since the beginning of February.
He Swiss National Bank raised its policy rate by 50 basis points, trying to balance fighting inflation with concerns about financial market turbulence, while reiterating that it is willing to be active in the foreign exchange market. After the decision, the frank improves 0.2%, at $0.9155.
Sterling was also hovering around seven-week highs. after data on Wednesday showed an unexpected acceleration in UK inflation, increasing pressure on the Bank of England to raise rates and be aggressive at its next meeting.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
