He benefited from the US Federal Reserve’s hints that it might soon stop raising interest rates
The dollar compensated for the losses it suffered earlier in the day, after hints from the US Federal Reserve (the central bank) that it may soon stop raising interest rates, while the Swiss National Bank and the Bank of England decided to proceed with raising them.
The US central bank raised its main interest rate by 25 basis points, in line with expectations, but softened its tone on the need for “continued increases” in interest rates, using the phrase “some additional (increases)”.
The dollar index, which measures the performance of the US currency against six major currencies, rose 0.078% to 102.510, achieving gains on the first day after five consecutive days of losses.
The euro jumped to a seven-week high of $1.0930, before retreating. At the end of the day, it reached $1.08480.
The Bank of England raised the cost of borrowing by 25 basis points on Thursday, in line with expectations.
Sterling rose 0.13% against the US currency, to $1.22845.
The dollar fell against the Swiss franc after the Swiss Central Bank’s decision to raise interest rates by 50 basis points, and the last drop was 0.19%, at 0.916 francs.