US dollar indexOn Wednesday (2nd), it reversed the intraday sluggish trend and pulled sharply in late trading, reaching a nearly two-week high. The U.S. Federal Reserve earlier raised interest rates sharply as expected, but hawkish comments revived the dollar’s gains after Chairman Jerome Powell said it was too early to discuss a pause.
ICE, which tracks the dollar against six major currencies, is late in New York US dollar index (DXY) rose 0.57% to 112.12, closing at its highest since Oct. 20.
As the market expected, the Fed raised interest rates four times in a row by 3 yards after the two-day decision-making meeting. Financial markets initially interpreted the meeting statement as dovish, coupled with the central bank’s signal that it may slow rate hikes in the future, spurring short-term gains in risky assets and a plunge in the dollar.
Powell said that the Fed may discuss changing the pace of interest rate hikes at the December meeting. At the same time, he also showed a hawkish attitude towards inflation, saying that the terminal interest rate may be higher than originally expected. The hawkish remarks came out, The stock market immediately turned black and tumbled, and the dollar rose.
“The future of Fed policy and the dollar remains unclear as there are jobs and inflation data ahead of the next policy meeting,” said Joe Manimbo, a market analyst at Convera. He believes the dollar will remain strong in the near term because even with the Fed’s The path to rate hikes has come to an end, and it won’t turn to a rate cut for a long time.
Financial markets remain divided on how much the Fed will raise interest rates next month. The CME Group’s FedWatch tool showed a 56.8 percent chance of a rate hike of 2 rates next month and a 43.2 percent chance of a rate hike of 3 rates next month.
After the Fed announced its decision,EURThe greenback initially pulled higher before turning lower, ending 0.55% lower at $0.9821.
JPYAgainst the U.S. dollar, it once rose to 145.7 JPYand finally depreciated 0.3% to 147.76 JPYagainst 1 dollar. So far this year,JPYIt has lost about 22% of its value against the dollar this year, with traders continuing to monitor whether Japanese authorities continue to intervene in currency markets.
Japanese Finance Minister Shunichi Suzuki said on Tuesday (1st) that the action to intervene in the foreign exchange market has been a secret operation, hoping to maximize its impact on the market. Earlier data showed that the Japanese government spent a total of $43 billion in foreign exchange intervention last month, a record high.
GBPIt was last lower, down 0.8% at $1.1388. Market expectations, the Bank of England (BoE) will also raise interest rates by 3 yards on Thursday.
AUD、source of stringInternally risky currencies are also affected by the Fed’s decision-making and fluctuate violently.AUDIt closed down 0.7 percent at $0.6350 in late trade.source of stringDown 0.4% to $0.5823.
As of Thursday (3rd) Taiwan time about 7:00 Price:
- US dollar indexReport 112.1088. +0.5035%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $0.9815. -0.5975%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst 1.1391 yuan. -0.7666%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst 0.6348 yuan. -0.7194%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.3709 US dollar Canadian Dollars。+0.5944%
- dollar againstJPY (USD/JPY) exchange rate at 147.81 US dollar JPY。-0.2901%