Dollar sharpens decline to 10-month low after Fed's meeting

Economies.com
2023-02-02 12:22PM UTC

Dollar fell in European trade on Thursday against a basket of major rivals, sharpening the losses for the third session, plumbing ten-month lows following Fed's meeting. 

 

The Fed continued to slow down its policy decisions and hiked interest rates by 25 basis points, with Jerome Powell touting the slowdown of inflation in the US. 

 

The Index

 

The dollar index fell 0.35% to 100.82, the lowest since April 2022, with a session-high at 101.26, after closing down 1% yesterday. 

 

The Fed

 

The Fed recently increased interest rates by 25 basis points to 4.75%, the highest since September 2007.

 

Advertistment

Fed Chair Jerome Powell touted the slowdown in consumer prices in recent months, and said the Fed will continue to take decisions every meeting based on the most recent data.

 

He asserted that policy needs to remain tight for some time, and that Fed officials still need more evidence that inflation is on track towards 2%.

 

Economic Developments

 

Recent data decisively agree that inflation is slowing down alongside economic growth, an indication the Fed's policies are taking a toll.

 

Fed Rates

 

After the meeting, pricing for a 0.25% rate hike by the Fed in March rose to 85% ahead of US labor data tomorrow. 

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