Currency – The u.s. dollar was stable after the Fed

© Reuters. The dollar is steady after the Fed

The us dollar stabilized against a basket of rivals on Thursday, after having slid after the rate hike by the Federal Reserve.

The index U. S. dollar, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was at 93.47 at 03:40 AM (08h40 GMT), after having plunged to a low of 93,88.

The Fed has raised its rate for the third time this year and indicated that she would stay on the same path next year, disappointing some bulls who had speculated that the Fed may increase its projection of interest rates for the next year to four rate hikes.

The central bank also said it expected inflation to remain below its goal for another year, tempering the expectations of an acceleration of rate increases.

The dollar was also lagging after the data on consumer prices in the United States released on Wednesday showed a slowdown in inflation.

But the hope of progress on tax reform, including a tax reduction, continuing to support the dollar.

The dollar is advancing against the yen, with USD/JPY up 0.19% to 112.76 after falling 0.9% on Wednesday.

The euro changes little against the dollar with the EUR/USD at 1.1830, after rising 0.7% the previous day.

In the euro zone, figures showed on Thursday that the German economy has experienced the fastest growth in more than six and a half years in December, while a similar survey showed that the French economy also completed 2018 on a sharp note.

The book advance, with the GBP/USD up 0.13% at 1.3432.

The Bank of England and the european central Bank had to publish their latest announcement of monetary policy and should keep their rates at a stable level.

At the same time, the swiss national Bank maintained its interest rate unchanged at a record low of 0.75% after its meeting on Thursday and pledged to “remain active” on the foreign exchange market to prevent the swiss franc from becoming too strong.

The swiss franc remained lower against the euro and the dollar after the announcement, with the USD/CHF to 0.9861, and the EUR/CHF 1.1670

Like this post? Please share to your friends:
Leave a Reply