Reported 7 months ago
The US dollar initially dropped but then partially recovered after the Federal Reserve revised its expected interest-rate cuts for the year to only one. This adjustment, which followed cooler-than-expected US inflation data, led to a 0.3% decrease in the Bloomberg Dollar Spot Index. While the market had anticipated three rate cuts, the Fed's decision to keep rates unchanged surprised many, causing fluctuations in foreign exchange markets with the euro surging by over 1% against the dollar. Traders are closely monitoring US economic indicators for signals on the timing of potential Fed easing, especially after the Bank of Canada and European Central Bank recently lowered rates.
Source: YAHOO