U.S. Dollar Rebounds As Fed Signals Only One Rate Cut This Year
June 12 2024 - 12:08PM
RTTF2
The U.S. dollar recovered against its major counterparts in the
New York session on Wednesday, as the Federal Reserve kept its
benchmark rate unchanged as widely expected and projected just one
rate cut this year.
In support of its goals of maximum employment and inflation at
the rate of 2 percent over the longer run, the Fed said it decided
to maintain the target range for the federal funds rate at 5.25 to
5.50 percent.
The Fed acknowledged modest further progress toward its
inflation objective in recent months but said officials still need
"greater confidence" inflation is moving sustainably towards the
target before they will consider lowering rates.
The continued need for "greater confidence" inflation is slowing
was reflected in the Fed officials' forecast for interest
rates.
The latest projections showed officials now expect rates in a
range of 5.0 to 5.25 percent by the end of 2024, suggesting just
one rate cut this year compared to the three forecast in March.
The greenback recovered to 0.8947 against the franc and 156.70
against the yen, from its early 5-day lows of 0.8892 and 155.71,
respectively.
The greenback rebounded to 1.0807 against the euro and 1.3731
against the loonie, reversing from its early 5-day lows of 1.0852
and 1.3679, respectively.
The greenback bounced off to 0.6664 against the aussie and
0.6175 against the kiwi, up from an early more than 3-week low of
0.6700 and near a 5-month low of 0.6222, respectively.
The greenback recovered to 1.2791 against the pound, off an
early fresh 3-month low of 1.2860.
Next key resistance for the currency is seen around 0.92 against
the franc, 160.00 against the yen, 1.05 against the euro, 1.24
against the pound, 1.39 against the loonie, 0.64 against the aussie
and 0.60 against the kiwi.
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