Currency Buzz: Dollar Index Slides Under 106 Mark On Dovish Fed Minutes

24 Nov 2022 , 12:46 PM

The US dollar fell broadly against major currency pairs on Thursday after minutes from the Federal Reserves November meeting showed that most policymakers at the central bank agreed it would soon be appropriate to slow the pace of interest rate hikes. Earlier this month, the Fed delivered its fourth straight 75 basis point rate increase to 3.75%-4% in an effort to tame stubbornly high inflation. The yield on the US 10-year Treasury note dropped toward 3.7%, the lowest in a week after the latest Fed minutes while dollar index dragged lower by 0.33% at 105.62. Policymakers also noted that with inflation showing little sign of abating, and with supply and demand imbalances in the economy persisting, the ultimate level of the federal funds rate that would be necessary to achieve the Committees goals was somewhat higher than they had previously expected.Powered by Commodity Insights