Dollar steady after US Federal Reserve holds interest rates

The US dollar held steady after the Federal Reserve decided to keep interest rates unchanged, according to Ajel English. The US Dollar Index (DXY) was trading near 102.25 during early European trading hours on Thursday, gaining strength following the decision at the October policy meeting, according to FXStreet.

The Federal Open Market Committee voted 10-2 to maintain the benchmark federal funds rate in a range of 3.75% to 4%. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented from the decision, with both preferring a 25 basis point hike, FXStreet reported. Policymakers indicated they hope upcoming data will assist in future decisions, and traders are currently pricing in an 83.3% probability of a rate hike in December.

During a press conference, Fed Chairman Kevin Warsh acknowledged that the central bank has not yet achieved price stability but noted that work is being done to address it. According to FXStreet, Carol Kong, a currency strategist at Commonwealth Bank of Australia, interpreted Warsh's lack of guidance on further rate hikes as dovish.

Brief written by urgent.news from Ajel English, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.