The dollar declines after the decision of the US Federal Reserve to maintain interest rates.

Translated by Sama Marwan,

The dollar fell on Thursday after the Federal Reserve (the US central bank) kept interest rates unchanged and maintained its expectations for interest rate cuts for this year despite rising inflation.

The Australian dollar jumped after Thursday’s data showed sharp job growth in February and a decrease in unemployment rates much lower than expected.

The Australian dollar rose in latest trading by 0.33% to $0.6608, after climbing more than 0.4% to its highest level in a week at $0.6615 following strong job data.

At the end of the Federal Reserve’s meeting yesterday, Wednesday, Fed Chairman Jerome Powell said that recent high inflation readings have not changed the basic scenario for the Fed’s gradual easing of price pressures in the United States. The central bank is still on track to cut interest rates three times this year, although it expects slightly slower progress in the inflation battle.

In early January, the Federal Reserve kept US interest rates in a range between 5.25% and 5.50%, the highest level in the country in 22 years, hoping to bring US inflation back to its long-term target of 2% in the coming months.

Market bets indicate a cut in US interest rates at the Federal Reserve’s meeting on June 11 and 12 as the most likely start of central bank interest rate cuts, which have been in the range of 5.25% to 5.50% since last July.

US data showed a acceleration in consumer price inflation in the United States to 3.2% in February from 3.1% in the previous month.”

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