Dollar Up, Hits One-Month High as Fed Hints at Earlier-Than-Expected Rate Hike By Investing.com

Dollar Up, Hits One-Month High as Fed Hints at Earlier-Than-Expected Rate Hike By Investing.com


© Reuters.

By Gina Lee

Investing.com – The dollar was up on Thursday morning in Asia hitting its highest level in a month as the U.S. Federal Reserve plans to begin asset tapering and raise interest hikes a lot sooner than its developed market peers.

The that tracks the greenback against a basket of other currencies inched up 0.01% to 93.470 by 10:44 PM ET (2:44 AM GMT).

The pair inched up 0.10% to 109.89. Japanese markets are closed for a holiday.

The pair edged down 0.15% to 0.7234 and the pair was down 0.21% to 0.6995.

The pair edged up 0.17% to 6.4690 and the pair inched up 0.01% to 1.3626.

The Fed did not announce that it would begin asset tapering as it on Wednesday. However, the central bank said “a moderation in the pace of asset purchases may soon be warranted”, with Chairman Jerome Powell adding that board members believed tapering could conclude around mid-2022, opening the way for interest rate hikes after that.

“Powell didn’t give any specifics about the start of the taper, he said there was broad agreement in the end of asset tapering, one which ‘concludes around the middle of 2022,'” NatWest Markets strategist. John Briggs told Reuters.

“This is in our view more important than when the tapering starts, as it starts the clock on when the next hike may occur.”

The safe-haven yen also recorded its sharpest drop in more than three months after the Fed policy decision, falling 0.5% for the session. Meanwhile, the kept its interest rate steady at -0.10% as it handed down its latest policy decision on Wednesday. Both BOJ and the European Central Bank are not expected to hike their interest rates anytime soon.

The yen also suffered some losses on Wednesday after developer China Evergrande Group’s (HK:) main unit . However, some $83.5 million in interest on an offshore bond remains due on Thursday.

Meanwhile, the and are among the central banks handing down their policy decisions later in the day, with the latter widely expected to deliver the first hike among G10 central banks.

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

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: