top of page

Title: Dollar near one-month low as Fed minutes point to rates pause

  • Writer: analysiswatch
    analysiswatch
  • May 26, 2022
  • 1 min read

May 26, 2022 02:15AM ET


By: AnalysisWatch


The dollar hovered near a one-month low on Thursday after the minutes of the Federal Reserve's May meeting confirmed the possibility of a pause in rate hikes after likely further increases in June and July.


The dollar index, which measures the currency against six other major currencies, rose 0.1% to 102.15 as a decline in Asian stocks boosted demand for safe-haven assets such as greenbacks.


However, after a brief rise to 102.45 immediately after the release of Wednesday's minutes, the index mostly consolidated around 102 points.


According to analysts, there was no indication of a further tightening of the Federal Open Market Committee's already restrictive stance. Wall Street rose overnight thanks to this outlook, while long-term Treasury yields held steady.


Atlanta Fed President Raphael Bostic suggested earlier this week that after two more 50 basis point hikes in June and July, a pause in September might be best to monitor the impact on the economy.


The dollar index hit a near 20-year high above 105 by mid-month and signs that the Fed's aggressive policy is already slowing economic growth have prompted traders to cut bets on tightening.


The yield on 10-year Treasuries moved sideways at 2.75% in Tokyo, continuing a consolidation around that level this week.


The dollar gained 0.08% to 127.425 yen, while the euro was roughly unchanged at $1.0679. The pound fell 0.17% to $1.25615.


The risk-sensitive Australian dollar fell 0.25% to $0.70695. The New Zealand dollar fell 0.31% to $0.6458 after giving back most of its gains following the Reserve Bank of New Zealand's meeting result released Wednesday, which pushed it to a three-week high of $0.6514.

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page