2024-05-01 21:32:00
The dollar index, which measures the US currency‘s performance against a basket of six major currencies, fell 0.4% to 105.85 units, having previously hit 106.49, the highest level since April 16. A step above 106.51 would be the highest level since early November.
he stable trade yen has since fallen overnight to its lowest level alleged intervention by the Japanese authorities Last Monday.
The Fed also announced that it will reduce the pace of its balance sheet reduction starting June 1, allowing only $25 billion in Treasury bonds to be withdrawn per month, compared to the current 60,000 million. Mortgage-backed securities will continue to decline by as much as $35 billion per month.
he the euro gained 0.5% to $1.0718 and the The pound appreciated 0.3% to $1.2532. he dollar fell 0.3% against the yento the ¥157.28.
In cryptocurrencies, Bitcoin fell 2% to $58,683.79, after earlier hitting $56,483, the lowest level since February 27.
The Fed kept the rate of monetary policy, but warned about the path of inflation
The central bank, in a statement after its two-day meeting, said yes “In recent months, no further progress has been made towards the Committee’s 2% inflation target”which was very much in line with what was expected.
Although, president, Jerome Powellsaid in a press conference that the next change in US central bank monetary policy is unlikely to be a hikeallaying some concerns about the possibility that the Fed will be heading for more a hawk.
Fund futures traders Federal Reserve now predict cut 35 basis points this yearcompared to 29 basis points before the central bank’s statement.
“The lack of change in forward guidance (that the next move will be a cut, depending on inflation) was a bit modest, and I’m not sure the a new phrase introduced about the lack of progress on inflation is enough to counter that“, said John Velismacroeconomic and currency strategies at BNY Mellon in New York.
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