In the New York foreign exchange market, the dollar index fell. The minutes of the meeting released by the US Federal Reserve (Fed) revealed that, as expected, concerns about a premature interest rate cut were expressed. Photographed in March 2023 (2024 Reuters/Dado Ruvic)
NEW YORK (Reuters) – At the New York foreign exchange market, the dollar index fell. The minutes of the meeting released by the US Federal Reserve (Fed) revealed that, as expected, concerns about a premature interest rate cut were expressed.
According to the January 30-31 Federal Open Market Committee (FOMC) minutes, policymakers must maintain a restrictive monetary policy stance to bring inflation back to the 2% target. Emphasizes the uncertainty surrounding the period. Most participants pointed to the risks of easing policy stances too quickly. See more In the money market, the Federal Reserve is expected to begin cutting interest rates in June.See more
“The overall message was that Fed officials are watching developments closely, but they haven’t come to a conclusion yet,” Vasily Serebryakov, a foreign exchange strategist at UBS in New York, said of the FOMC minutes. .
Regarding recent U.S. economic indicators, the Federal Reserve has decided to keep interest rates at high levels for a longer period of time as the Consumer Price Index (CPI) and Wholesale Price Index (PPI) grew faster than expected in January. There is a growing view that On the other hand, weak retail sales in January caused the dollar to weaken.See more
“The dollar is under some pressure because there’s a lot of uncertainty around the data coming in,” said Bipan Rai, head of North American foreign exchange strategy at CIBC Capital Markets in Toronto.
Richmond Fed President Barkin also said on the same day that January’s faster-than-expected CPI and PPI growth complicates the Fed’s future interest rate decisions.See more
In late trading, the dollar index against six major currencies was down 0.04% to 104.00.
The euro/dollar exchange rate rose 0.1% to $1.0815.
The dollar/yen exchange rate rose 0.13% to 150.19 yen.
The British pound/dollar exchange rate rose 0.11% to $1.2632. The UK’s Office for National Statistics (ONS) announced a budget surplus of 16.7 billion pounds ($21.08 billion) in January, the highest ever.See more
Among crypto assets (virtual currencies), Bitcoin fell 1.96% to $51,028.
Table is based on LSEG data *Forex market
Our code of conduct:Thomson Reuters “Principles of Trust”, opens new tab
2024-02-21 22:22:48
#foreign #exchange #market #dollar #decline #FOMC #minutes