Dollar Loses Against Major Counterparts After Fed Policy Announcement
(RTTNews) - The U.S. dollar fell on Wednesday after the Federal Reserve announced a 25-basis point hike in interest rate and the Fed Chair Jerome Powell said in his post-meeting press conference that the central bank could raise rates again in September or hold steady, and noted the central bank plans to take a meeting by meeting approach.
The Fed noted inflation remains elevated, while U.S. economic activity has been expanding at a moderate pace and job gains have been robust in recent months.
"So we haven't made any decisions about any future meetings, including the pace at which we consider hiking, but we're going to be assessing the need for further tightening that may be appropriate."
At the same time, the Fed Chief said the central bank can "afford to be a little patient" as they assess incoming economic data.
The dollar index fell to a low of 100.86 before edging up to 100.99, but still down by about 0.36% from the previous close.
Against the Euro, the dollar weakened to 1.1087 from the previous close of 1.1056. The dollar is weak against Pound Sterling at 1.2945, and against the Japanese currency, is down, fetching 140.36 yen a unit.
Against the Aussie, the dollar is stronger by about 0.5% at 0.6758. The Swiss franc has strengthened to CHF0.8606 a dollar, gaining from CHF0.8639. Against the Loonie, the dollar has firmed to C$1.3206 as oil prices fell.
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