Dollar Falls After US Federal Reserve Holds Interest Rates Steady
The dollar fell after the US Federal Reserve kept interest rates unchanged, while the New Zealand dollar dropped sharply following a surprise decision.
Translated by Qiyas from الجريدة — Original source
The US dollar fell against major currencies on Wednesday after the Federal Reserve (the US central bank) issued an expected decision to keep interest rates unchanged, while the New Zealand dollar plunged sharply after the country’s central bank unexpectedly left interest rates unchanged.
The US central bank decided, as anticipated, to hold interest rates steady, preferring to postpone any changes in borrowing costs until after the US midterm congressional elections scheduled for next week, pending further data on the trajectory of inflation.
Mark Chandler, chief market analyst at Bannockburn Global Forex, said, “The US dollar weakened compared to its level before the Federal Open Market Committee meeting, as the yield curve experienced further steepening.”
The US Dollar Index, which measures the strength of the US currency against a basket of six other currencies, fell 0.2 percent to 102.15 points.
The New Zealand dollar dropped 1.74 percent to 0.5583 US dollars after the Reserve Bank of New Zealand kept interest rates at 2.75 percent, surprising the vast majority of economists who had expected a rate hike.
The European Central Bank and the Bank of Japan are expected to announce their monetary policy decisions on Thursday and Friday, respectively, with both central banks anticipated to keep interest rates unchanged.
