The dollar is steadying early Thursday after falling sharply as the Federal Reserve all but swore off raising interest rates again this year – a swing that could signal the end of the whole policy tightening cycle.
“The Fed’s concerns over the future inflation path are clearly stronger than anticipated and it seems that the hiking cycle really is now over,” said Lee Ferridge, head of multi-asset strategy, the Americas at State Street (NYSE:STT) Global Markets.
The dollar index, which measures the greenback against a basket of six major currencies, lost over half a percent in reaction to the news, but it recovered during Asian trading hours and at 04:00 AM ET (0800 GMT), it stood at 95.412, down around 0.5% from its level before the announcements. The euro was at $1.1422, just off a six-week high of $1.1438, while against the yen, the dollar fell to a new five-week low of 110.36.
Source : Investing.com