Dollar jumps to 2-month peak after Fed hints rate hike in 2023

2021-06-17 12:22:19 GMT (Economies.com)
Dollar jumps to 2-month peak after Fed hints rate hike in 2023

The US dollar rose against its peers on Thursday, extending its gains for the third day, and hit a 2-month high, after the US Federal Reserve hinted earlier policy tightening as inflation and growth improve. 

 

The dollar index rose 0.5% to the highest since last April 13 at 91.85 points, after opening at 91.42, and hit an intraday low at 91.30 points.

 

The index rose by 1% yesterday, in the largest daily gain since March 19, 2020, following the Fed meeting and a surge in the 10-year US Treasury bond yields.

 

The US Federal Reserve decided to hold the interest rate between zero and 0.25% unchanged on Wednesday, but hinted a rate hike in 2023.

 

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.

 
 
 
  Symbol Last Change Chg.%
1.1846
0.0058
0.4963%
1.3906
0.0109
0.7900%
Tadawul
10933.73
22.68
0.21%
25.041
-0.171
0.676%
72.398
0.757
1.057%
74.74
0.31
0.42%
1809.465
7.330
0.407%
 
 
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