Dollar Rises on Hawkish Fed Minutes

23 May 2024 , 08:37 AM

Following its best day this month relative to its major peers, the dollar was trading close to a one-week high on Thursday. This was after the minutes of the most recent Federal Reserve meeting showed that some policymakers were inclined to hike interest rates.

Hotter-than-expected inflation sent sterling to a one-month high, but it also found support in the news of a UK parliamentary election on July 4.

Notwithstanding Japan’s authorities’ persistent threat of intervention, the yen hovered around a three-week low.

In the midst of conjecture around the possible authorization of U.S. spot exchange-traded funds that would monitor the second-largest cryptocurrency globally, ether remained close to its top from more than two months ago.

After rising 0.28% over night, the dollar index, which measures the value of the dollar against six key competitors, including the euro, sterling, and yen, was barely moved, closing at 104.89.

During their meeting on April 30-May 1, Fed officials expressed their continued belief that pricing pressures will subside, even if they did so gradually. However, the meeting summary also included talk of potential tightening.

The dollar rose to 156.85 yen overnight, its highest level since May 1, but it was barely changed at 156.77 yen. After the yen fell to a 34-year low of 160.245 per dollar on April 29, traders and analysts believe Japan’s Ministry of Finance intervened multiple times to maintain the currency.

The euro increased by 0.06% to $1.08275, but it was still near the $1.08175 low from the previous night.

After rising as high as $1.27610 on Wednesday for the first time since March 21 because of sticky inflation crushing bets for a June cut by the Bank of England, sterling stabilised around $1.2723.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/