Dollar Declined, Euro Elevated as Fed kept Dovish Monetary Policy
The Dollar declined on Thursday morning in Asia, as the U.S. Federal permit in its most advanced policy decision the global reflation trade with persistently aggressive monetary policy.
The U.S. Dollar Index traces the greenback against a basket of other major currencies slightly down 0.08%.
The USD/JPY pair slightly down 0.01% to 108.58. A holiday in Japan could help reduce losses during the Asian session.
The AUD/USD pair Edged up 0.04% to 0.7792.
The NZD/USD pair Edged up 0.08% to 0.7258.
The USD/CNY pair inched down 0.11% to 6.4702.
The GBP/USD edged up 0.15% to 1.3954.
The dollar’s failure was the euro’s gains, with the only currency hitting its highest level against the dollar following late February 2021 while deciphering major trendline resistance at $1.2114.
The Fed preserved its interest rate constant at 0.25% as it delivered its policy decision on Wednesday as per investor expectations. Fed Chairman Jerome Powell stating it was “not time yet” and that employment still had a long way towards recovery.
USD/TRY slightly higher to 8.1972, before the first public policy presentation by Turkey’s new central bank Governor Sahap Kavcioglu.