Forex Today: US Dollar eases ahead of Bank of Japan decision
The US Dollar (USD) is ending Thursday softer. The US Dollar Index (DXY) hovers just above the 100.00 mark after climbing to a seven-week high earlier in the week. The sideways action follows Wednesday's decision by the Federal Reserve (Fed) to raise interest rates for the first time since 2023.
On Thursday, the US Dollar (USD) showed signs of weakness, with the US Dollar Index (DXY) hovering just above the 100.00 mark. This came after the Federal Reserve (Fed) raised interest rates for the first time since 2023, a move that briefly boosted the Dollar. However, energy prices falling from their highs and President Donald Trump's renewed call for lower rates dampened the rally.
Despite the Fed's hawkish message, Chair Kevin Warsh hinted that another hike could still happen this year, keeping the Greenback's value in check. As traders look ahead to a busy Friday, the Bank of Japan (BoJ) decision is the focal point. The US Dollar was the strongest against the British Pound, while USD/JPY dipped towards the 156.00 region as traders anticipate the BoJ's expected rate hike.
Meanwhile, Gold surged above $4,350 per troy ounce, and WTI Oil steadied above $100.00. AUD/USD found fresh buyers, reaching the low-0.7100s, while USD/JPY recovered from a brief dip below 156.00, showing the potential for a new two-week high.
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