Dollar stabilizes amid Fed caution
Date
5/22/2024 5:59:52 AM
(MENAFN) On Wednesday, the dollar demonstrated resilience against a basket of major currencies, with investors taking heed of cautious statements from officials at the Federal Reserve. These officials urged patience while awaiting the release of minutes from the bank’s Monetary Policy Committee meeting, seen as crucial for insights into the trajectory of interest rates. This cautious stance lent stability to the dollar index, which hovered around 104.65, experiencing only a slight uptick to 104.76 at one point during the day.
Meanwhile, the New Zealand dollar surged following the Reserve bank of New Zealand's decision to revise its forecast for peak interest rates during its recent monetary policy meeting. This unexpected move saw the New Zealand dollar reaching 0.6152 against the greenback, its highest level since March 14. Notably, this marked a 0.4 percent increase to USD0.6117 in its most recent transactions.
Despite the absence of significant economic data guiding market movements this week, major currencies largely remained within a narrow trading range. The pound sterling, for instance, saw little change as it settled at USD1.2709, maintaining proximity to its two-month high reached the previous day. Investors awaited with anticipation an impending inflation report from Britain, slated for release later in the day.
The euro, likewise, found stability at USD1.0853, reflecting minimal fluctuations. Conversely, the yen experienced a modest uptick of 0.1 percent against the dollar, reaching 156.35, following the release of data indicating an 8.3 percent increase in Japan's exports for April on an annual basis.
In the realm of cryptocurrencies, Bitcoin witnessed a marginal decline of 0.2 percent in its latest transactions, sliding to USD69,571. This movement underscored ongoing fluctuations within the volatile cryptocurrency market, contributing to the broader narrative of uncertainty in financial markets.
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