Forex News

Dollar surges after Fed signals more rate hikes ahead

2023.06.15 02:29


© Reuters.

Investing.com – The U.S. dollar rallied in early European trade Thursday, boosted by the Federal Reserve’s hawkish projection of more tightening this year, while the euro weakened ahead of the latest European Central Bank policy meeting.

At 02:05 ET (06:05 GMT), the , which tracks the greenback against a basket of six other currencies, traded 0.3% higher to 102.835, recovering from the previous session’s four-week low.

Hawkish Fed supports the dollar

The U.S. currency bounced after recent losses following the conclusion of the latest policy-setting meeting of the on Wednesday, with the central bank deciding to pause its year-long policy tightening cycle, as widely expected.

However, the Fed also signaled in new economic projections that rates will likely rise by another half of a percentage point, i.e. two more hikes of 25 basis points, by the end of this year.

“We think signalling another hike in the 2023 projections would trigger a quite substantial dollar rally as markets see the July meeting as the most likely date for the next rate increase,” said analysts at ING, in a note.

ECB expected to hike later

fell 0.2% to 1.0817, suffering from the resurgence of the dollar ahead of the European Central Bank’s next later in the session, with another 25 basis-point hike widely expected.

Such a move would be the eighth straight increase of that size, and the ECB is also expected to signal more hikes to come in the months ahead following President Christine Lagarde’s recent comments that “there is no clear evidence that underlying inflation has peaked.”

Yen hits seven-month low

rose 0.8% to 141.14, climbing to levels not seen since November last year after traders drew the distinction between the hawkish commentary from the Federal Reserve and what is likely to come from the on Friday.

The BoJ is widely expected to maintain its ultra-dovish stance and yield curve control settings as it attempts to support the country’s nascent economic recovery.

However, a Japanese government spokesperson did try to offer vocal support for the yen, saying volatile currency market moves were undesirable and authorities would take “appropriate” action as needed.

Elsewhere, fell 0.1% to 1.2652, fell 0.3% to 0.6189 after data showed New Zealand’s economy shrank into a technical in the first quarter, while fell 0.2% to 7.1529, with the yuan trading near a six-month low after the People’s Bank of China cut interest rates on its medium-term loans on Thursday.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 91,983.65 3.74%
ethereum
Ethereum (ETH) $ 2,500.59 7.73%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.28 8.42%
bnb
BNB (BNB) $ 607.58 5.40%
solana
Solana (SOL) $ 139.02 12.81%
usd-coin
USDC (USDC) $ 1.00 0.01%
dogecoin
Dogecoin (DOGE) $ 0.20982 9.20%
cardano
Cardano (ADA) $ 0.680768 7.82%
staked-ether
Lido Staked Ether (STETH) $ 2,493.96 7.79%
tron
TRON (TRX) $ 0.241698 0.71%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 91,866.61 3.74%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,985.65 7.67%
chainlink
Chainlink (LINK) $ 15.10 9.54%
stellar
Stellar (XLM) $ 0.296932 7.49%
avalanche-2
Avalanche (AVAX) $ 21.73 9.16%
sui
Sui (SUI) $ 2.81 14.33%
usds
USDS (USDS) $ 0.999893 0.11%
litecoin
Litecoin (LTC) $ 113.61 7.68%
the-open-network
Toncoin (TON) $ 3.43 7.89%
leo-token
LEO Token (LEO) $ 8.87 9.25%
hedera-hashgraph
Hedera (HBAR) $ 0.194127 5.43%
shiba-inu
Shiba Inu (SHIB) $ 0.000014 7.12%
mantra-dao
MANTRA (OM) $ 7.99 5.87%
weth
WETH (WETH) $ 2,497.85 7.76%
polkadot
Polkadot (DOT) $ 4.37 8.75%
hyperliquid
Hyperliquid (HYPE) $ 18.76 14.49%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
bitcoin-cash
Bitcoin Cash (BCH) $ 291.23 8.46%
bitget-token
Bitget Token (BGB) $ 4.64 6.12%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,648.39 7.73%
uniswap
Uniswap (UNI) $ 7.89 9.16%
monero
Monero (XMR) $ 227.99 2.75%
whitebit
WhiteBIT Coin (WBT) $ 27.30 0.63%
near
NEAR Protocol (NEAR) $ 3.00 9.71%
dai
Dai (DAI) $ 0.999518 0.01%
pepe
Pepe (PEPE) $ 0.000008 12.16%
bittensor
Bittensor (TAO) $ 381.75 6.04%
aptos
Aptos (APT) $ 5.36 7.66%
ondo-finance
Ondo (ONDO) $ 0.982107 10.01%
susds
sUSDS (SUSDS) $ 1.04 0.03%
aave
Aave (AAVE) $ 203.60 14.27%
internet-computer
Internet Computer (ICP) $ 6.26 9.15%
okb
OKB (OKB) $ 46.33 4.32%
ethereum-classic
Ethereum Classic (ETC) $ 18.42 7.75%
gatechain-token
Gate (GT) $ 21.82 4.78%
mantle
Mantle (MNT) $ 0.811871 8.60%
tokenize-xchange
Tokenize Xchange (TKX) $ 34.07 12.52%
official-trump
Official Trump (TRUMP) $ 13.16 13.10%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 92,001.65 3.66%