Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


By Karen Brettell

NEW YORK (Reuters) – The dollar fell against a basket of currencies on Wednesday ahead of the outcome of a Federal Reserve meeting, as investors evaluated how much expected U.S. central bank hawkishness is already priced into the greenback.

The Fed is expected to hike rates by 50 basis points, which would be the largest increase in two decades, and announce plans to reduce its $9 trillion balance sheet as it tackles inflation rising at the fastest pace in 40 years.

Comments by Fed Chairman Jerome Powell at the conclusion of the meeting will be scrutinized for signals on how the U.S. central bank will balance the need to stem rising price pressures against weakening growth if the economy stutters.

Chair Powell’s post-decision press conference will be key. If he shows any hints of dovishness, markets will take yields and the dollar lower,” Win Thin, global head of currency strategy at Brown Brothers Harriman, said in a report.

That said, we see no reason for Powell to hedge his bets right now and so we expect full speed ahead from the Fed,” he added.

The dollar index was last at 103.24, down 0.16% on the day. It reached 103.93 on Thursday, the highest since Dec. 2002.

Fed funds futures traders are pricing for the Fed’s benchmark rate to increase to 2.96% by year-end, from 0.33% now.

The Fed is expected to take a more hawkish approach to monetary policy than its peers, with Europe struggling from weaker growth and energy disruptions due to sanctions imposed on Russia after its invasion of Ukraine.

The EU proposed its toughest sanctions yet against Russia on Wednesday, including a phased oil embargo.

The euro rose to $1.0551, up 0.30%, after dropping to $1.0470 on Thursday, the lowest since January 2017.

The U.S. dollar has also benefited from safe-haven flows as COVID-19 restrictions in China trigger concerns about global growth and new supply chain disruptions.

Beijing shut scores of metro stations and bus routes and extended COVID-19 curbs on many public venues on Wednesday, focusing efforts to avoid the fate of Shanghai, where millions have been under strict lockdown for more than a month.

The Aussie dollar outperformed for the second day, after the Reserve Bank of Australia on Tuesday raised its cash rate by a surprisingly large 25 basis points to 0.35%, the first hike in over a decade, and flagged more to come as it pulls down the curtain on its massive pandemic stimulus.

The Aussie gained 0.63% to $0.7141.


Currency bid prices at 9:32AM (1332 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index 103.2400 103.4400 -0.16% 7.921% +103.6000 +103.1700

Euro/Dollar $1.0551 $1.0519 +0.30% -7.20% +$1.0556 +$1.0507

Dollar/Yen 129.9400 130.1300 -0.17% +12.85% +130.2000 +129.8000

Euro/Yen 137.11 136.92 +0.14% +5.21% +137.1200 +136.7200

Dollar/Swiss 0.9816 0.9788 +0.29% +7.62% +0.9819 +0.9784

Sterling/Dollar $1.2516 $1.2496 +0.16% -7.45% +$1.2537 +$1.2469

Dollar/Canadian 1.2823 1.2842 -0.14% +1.42% +1.2842 +1.2805

Aussie/Dollar $0.7141 $0.7096 +0.63% -1.77% +$0.7151 +$0.7089

Euro/Swiss 1.0355 1.0295 +0.58% -0.14% +1.0356 +1.0285

Euro/Sterling 0.8428 0.8418 +0.12% +0.33% +0.8433 +0.8404

NZ $0.6446 $0.6436 +0.19% -5.79% +$0.6462 +$0.6423


Dollar/Norway 9.3810 9.4000 -0.37% +6.31% +9.4265 +9.3650

Euro/Norway 9.8988 9.8823 +0.17% -1.14% +9.9179 +9.8673

Dollar/Sweden 9.8539 9.8606 +0.19% +9.27% +9.9010 +9.8453

Euro/Sweden 10.3979 10.3779 +0.19% +1.60% +10.4093 +10.3750


(Additional reporting by Sujata Rao in London; Editing by Hugh Lawson)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts