Dollar steady after Fed hold leaves rate path murky
The greenback had held near two-week highs ahead of the announcement but turned lower after Fed chair Kevin Warsh offered no clear steer on a December move.
The US dollar remained relatively stable on Thursday after the Federal Reserve maintained interest rates as anticipated, although it left the path of future rates uncertain by waiting until after the midterm elections to make any changes. Fed Chair Kevin Warsh, in his press conference, offered no clear indication of a possible December rate hike, which traders interpreted as a dovish signal.
As a result, investors became less confident in the likelihood of rate hikes in 2027, and the dollar's strength against the yen was down slightly at ¥158.045. The euro also weakened against the US dollar, falling 0.15% to US$1.1134. Market strategists suggested that the market and the Fed would use this time to assess upcoming jobs and inflation data, with the impact on yields likely to remain range-bound unless there is clearer guidance on more aggressive policy tightening or cuts.
Looking ahead, analysts anticipate that the dollar will continue to fluctuate around recent highs as central bank meetings in Europe and Japan draw near.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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