Dollar Makes Dash Lower as Fed Open to Pause on Rate Hikes By Investing.com

Forex News


© Reuters.

Investing.com – The dollar resumed its slide against its rivals Wednesday as the Fed indicated it was willing to hold off on rate hikes amid concerns about global growth and subdued inflation, according to the minutes of its December meeting.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell 0.73% to 94.78.

Fed members indicated they could afford to be “patient” about future rate hikes, citing a list of concerns including volatility in financial markets, slowing global growth and muted inflation pressures.

While the Fed’s somewhat dovish tone kept the dollar on the back foot, the damage was done by earlier comments from Fed officials.

Federal Reserve Bank of Atlanta President Raphael Bostic said at an event in Tennessee that following the December rate hike rates were closer to neutral, suggesting that the runway for further hikes is limited.

While Chicago Fed President Charles Evans on Wednesday said the Fed can afford to take a wait-and-see approach to future policy, but added that rates could move higher if “downside risks dissipate.”

The dollar was also knocked by a stronger sterling despite British Prime Minister Theresa May suffering an early setback to her Brexit plans ahead of a key vote in parliament next week.

British lawmakers voted in favor of a measure forcing May to provide alternative Brexit plan sooner rather later.

The government was expecting to have 21 days to come up with an alternative plan for Brexit, if the current plan fails to get enough votes on Jan. 15. But it now would have to submit it within just three working days.

rose 0.61% to $1.2795, while surged 0.93% to $1.1546.

fell 0.43% to C$1.3215 as soaring oil prices supported the loonie, limiting gains in the pair. The pair also came under pressure after the Bank of Canada kept rates steady, but said it still intended to raise rates “over time”

fell 0.43% to Y108.46.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Articles You May Like

Turkish Lira Rebounds as Erdogan Warns Bankers Will Be Punished By Bloomberg
No-Deal Brexit Possibility Suddenly Comes Alive for the Markets By Bloomberg
Kee’s World – March 23, 2019
Buddhist Monk Who Wants To Spread Kindness Globally
Ladies, check your gestation hormone

Leave a Reply

Your email address will not be published. Required fields are marked *