Dollar continued to fall under pressure
2022.12.14 03:51
Dollar continued to fall under pressure
Budrigannews.com – After a sharp drop overnight as a result of inflation data that came in lower than expected, the U.S. dollar stabilized in early European trade on Wednesday ahead of the Federal Reserve’s decision on interest rates.
The, which compares the dollar to a basket of six other currencies, fell to 103.547 at 03:20 ET (08:20 GMT), just above the overnight low of 103.535, which was a six-month low.
remained below expectations for the second month in a row in November, indicating that inflation may have reached its peak after soaring to 40-year highs.
This makes it more likely that the will begin to slow down the rate at which it raises interest rates. After four increases of 75 basis points in a row, a 50-basis-point increase is largely priced in for later on Wednesday.
Investors want to know what the Chair of the Board of Governors thinks about interest rates going into the new year and over the next few years, so this puts the spotlight squarely on his remarks following the decision.
Inflation and gross domestic product forecasts will be included in the Fed’s so-called dot plot.
decreased by 0.1% to 1.0635, after reaching a six-month high of 1.0673 during the previous session in anticipation of the release of October data.
With inflationary pressures finally showing signs of abating, the meets on Thursday and appears set to slow its aggressive interest rate hikes by 50 basis points.
decreased from 2.0% in October to 10.7% from 11.1%, rising 0.2% to 1.2376 after rising just 0.4% on the month.
The meeting is on Thursday, and despite the fact that this announcement may lessen the pressure on the central bank to keep raising interest rates in the midst of a recession, it is anticipated that it will increase them once more by 50 basis points.
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fell 0.1% to 135.39, with the Japanese yen seeing some help notwithstanding the nation’s being amended even lower in October, as rising information costs because of raised and debilitating abroad interest weighed vigorously on neighborhood producing.
The risk-sensitive rose 0.1% to 0.6861 while the risk-sensitive edged lower to 6.9425. The Chinese yuan is hovering around a three-month high on hopes that the country’s economic recovery will be driven by the reversal of anti-COVID policies.
