The US Federal Reserve (Fed) on Wednesday (15th) decided to raise interest rates by 3 yards (75 basis points), suppressing inflation by the most since 1994, and predicting that the economy will slow down and unemployment will rise in the next few months. After the decision came out, the dollar weakened against major currencies.
ICE, which tracks the dollar against six major currencies, was late in New York US dollar index (DXY) fell 0.5 percent to 104.76.DXY It had risen to 105.79 when the decision was made, the highest level since December 2002.
Karl Schamotta, chief market strategist at Corpay, said Fed Chairman Powell said in a post-meeting news conference that a three-point rate hike would not be a common occurrence and was part of the reason for the dollar’s weakness. Members are pouring money into other currencies that will aggressively raise rates after the Fed.”
dollar againstEURDown 0.36% to trade at $1.0452 EUR.The European Central Bank (ECB) held an emergency meeting earlier on Wednesday and announced plans to create a new tool to solve the problemEURDifferentiation risks to mitigate a surge in bond yields in southern European countries such as Italy.
This crisis of differentiation refers to how ECB decisions may affectEURAmong the members of the region, bond yields in some countries will rise sharply, inconsistent with their economic fundamentals. The ECB will adjust the reinvestment of maturing bonds to help member countries with higher debt.
“The ECB meeting didn’t provide more information than last week’s policy statement,” said Simon Harvey, head of foreign exchange analysis at Monex Europe. But with the dollar under selling pressure,EURstill appreciate.
Japanese government bond yields remain subdued as U.S. rate hikesJapanese YenBeen under pressure recently.Japanese YenIt fell to 135.60 earlier on Wednesday Japanese YenAgainst the dollar, about a 25-year low, but as the dollar weakens,Japanese YenA strong rebound of about 1.3%. The Bank of Japan (Bank of Japan, BOJ) will announce its policy decision on Friday.
GBPAgainst the greenback, it also recovered from lows not seen since March 2020, gaining 1.71% to $1.2202 GBP。
However, analysts say that with UK economic growth decelerating and a potential trade conflict with the EU,GBPwill continue to be suppressed. The Bank of England (BOE) is scheduled to hold a decision-making meeting on Thursday.
cryptocurrencyaspect,BitcoinRefresh 18-month low, reported 20076.05 US dollars. Other cryptocurrencies were mostly down, showing that the market turmoil sparked by Celsius’ freeze on customer withdrawals earlier this week was not over yet.
As of Thursday (16th) at about 6:00 Taiwan time Price:
- US dollar indexReported at 104.7173. -0.73%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURConvert to $1.0462. +0.45%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPConvert to $1.2195. +1.66%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDConvert to $0.7021. +2.14%
- dollar againstCanadian Dollars (USD/CAD) exchange rate quoted at 1.2868 for 1 US dollar Canadian Dollars。-0.66%
- dollar againstJapanese Yen (USD/JPY) exchange rate quoted at 133.77 USD Japanese Yen。-1.32%