The super dollar remains at high levels awaiting Fed minutes

He dollar globally operates stably while operators wait the minutes of the latest monetary policy meeting of the Federal Reserve looking for clues on the outlook for central bank rates.

Last week, data showed high inflation in the United Statesleading investors to lower expectations that the Federal Reserve would begin rate cuts in March. Markets are currently projecting that the first cut will take place in June, compared to expectations at the beginning of the year that pointed to a first reduction in March.

Traders now anticipate cuts of 94 basis points (bps) by the Federal Reserve over the course of this year.

A slim majority of economists expect the Federal Reserve to cut interest rates in June, according to a Reuters poll.

Minutes from the Federal Reserve’s latest policy meeting, due to be released later, will shed light on the outlook for U.S. interest rates.

Dollar vs. other currencies

The dollar index, which measures the currency’s performance against a basket of six peers, rose 0.1% to 104.17, after having decreased by 0.25% on Tuesday due to the fall in bond yields at the level world.

The euro experienced a decrease of 0.1%, trading at $1.0795, pending a survey on consumer confidence in the euro zone to be published later.

The pound sterling fell 0.1%, settling at $1.2604, moving away from Tuesday’s one-week high of $1.2668after retreating from that level following comments from Bank of England Governor Andrew Bailey.

Bailey said Tuesday that he is comfortable with investors anticipating interest rate cuts this year, but pointed to signs of recovery in the British economy after the recession in late 2023.

The Chinese yuan is showing a rebound to near a nearly three-week high, standing at 7.1885 per dollar, supported by some rebound in its affected equity markets. Its counterpart abroad reaches a three-week high and registers an increase of 0.1%, standing at 7.1971 units per dollar.