The dollar is under pressure today, after the latest economic forecasts of the Federal Reserve (the US central bank) indicated that the cycle of raising interest rates has ended and that 2024 will witness a reduction in borrowing costs.
Both the euro and the Japanese yen jumped as a result, as the European Central Bank prepares to announce its policy decision later today, Thursday, and the Bank of Japan will issue its decision next week.
US Federal Reserve Chairman Jerome Powell said at the Federal Open Market Committee meeting on Wednesday that the historic tightening of monetary policy has likely ended. Policymakers are almost unanimous in their expectations that borrowing costs will fall in 2024.
The dollar index, which measures the US currency against a basket of currencies, reached 102.87 in the latest trading after falling to 102.77 overnight.
Although the economic data published in the recent period supported expectations that the Federal Reserve is capable of achieving a smooth decline in the US economy, Powell kept the option of moving again open if necessary, and pointed out that “the economy is surprising forecasters.”
Market focus now turns to a range of upcoming central bank decisions, including the European Central Bank, the Bank of England, the Norwegian Bank and the Swiss National Bank.
The euro generally stabilized at $1.0882 after rising yesterday, Wednesday, and the British pound recorded $1.2623 in the latest trading.
As for the yen, it rose significantly to about 142.80 yen to the dollar after the US currency declined overnight.
Regarding cryptocurrencies, Bitcoin rose to $42,904.
2023-12-14 03:51:32
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