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Thursday, April 25, 2024

The dollar appreciated after the Fed announced a policy decision

The dollar rose on Thursday morning, from a two-year low, even after the US Federal Reserve failed to surprise the market when the two-day meeting ended on Wednesday.

The Fed kept interest rates close to zero and said it would use all available tools to support recovery after the most severe economic downturn in “our time,” Fed Chairman Jerome Powell said. during an online press conference on Wednesday. The Fed also believes that economic recovery depends on the end of the COVID-19 pandemic, with Powell’s warning that there are signs that the number of COVID-19 infections is beginning to weigh on operations. economy.

But some investors have been looking forward to Fed meetings scheduled for later this year, when bigger changes to the Fed’s strategy could be revealed.

“ We think that September and November meetings will have more events, with (the Federal Open Market Committee) expected to review the policy framework in September and then revise guide and adjust the strategy to target inflation, ” Mike Swell, head of Goldman Sachs’ portfolio of fixed income asset portfolio (NYSE: GS), told Reuters.

The US dollar index tracked the greenback against a basket of other currencies rose by 0.12% to 94,343 at 9:47 PM ET (2:47 am GMT). The dollar has been falling for several days consecutively with the expectation that the Fed will continue to maintain its current monetary policy and speculate that the Fed will allow inflation to rise higher than before before raising interest rates.

USD / JPY exchange rate rose 0.14% to 105.06.

The AUD / USD exchange rate fell 0.07% to 0.7181 and the NZD / USD exchange rate fell 0.16% to 0.6656.

USD / CNY exchange rate decreased by 0.08%, increased by 6.9999 and exchange rate GBP / USD decreased by 0.08% to 1.2984.

Meanwhile, in the United States, Republicans and Democrats continue to debate the latest US stimulus measures. Investors will be looking to see if the two sides can finally reach a deal, before some stimulus measures expire on Friday

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