FOREX-Dollar Denies Risk Pivot As Fed Chairman Discusses Policy

Band David Henry

NEW YORK, December 15 (Reuters)Traders embraced and then turned away from the US dollar on Wednesday as initial enthusiasm for higher interest rates from the Federal Reserve turned into confidence to take more risk with stocks and others. currencies.

The US dollar index = USD rose 0.3% just after the Fed released a new monetary policy statement that paved the way for three quarter-percentage-point interest rate hikes next year.

But by the time Fed Chairman Jerome Powell wrapped up a press conference 90 minutes later, stocks were hitting near record highs and the dollar index was down 0.2%.

“This has been a catalyst for switching to some of the riskier currencies, like the euro, like the pound sterling,” said Joseph Manimbo, senior market analyst at Western Union Business Solutions.

Other risky currencies, such as the Australian, Canadian and New Zealand dollars, also gained against the dollar, while the Japanese yen, seen as a safe haven, lost.

“Wall Street is somewhat reassured that the Fed is not raising rates on autopilot. It will keep a close eye on the coronavirus and if it has to slow down it will,” Manimbo said.

Attention now turns to Thursday’s meetings of the European Central Bank and the Bank of England. Banks are trying to strike a balance between the need to support economies threatened by the coronavirus and the need to withdraw easy cash to curb inflation.

The greenback has been supported recently by expectations that US interest rates will rise faster than those of other countries. The dollar index, even after Wednesday’s highs and lows, was about 0.6% below its highest level in more than a year.

The euro EUR = EBS and the pound sterling each rose about 0.3% against the dollar. The Euro was trading at $ 1.1292 and the Pound at $ 1.3262 at 4:29 p.m. EST (9:29 p.m. GMT).

Australian dollar AUD = D3 won 1% to $ 0.7173 and the kiwi NZD = D3 rose 0.6% to $ 0.6782.

Against the Japanese yen, the dollar appreciated 0.4% to 114.0200. JPY = EBS

Cryptocurrency bitcoin rose 2% to $ 49,225. BTC = BTSP

=================================================== ======

Currency bid price at 4:29 p.m. (2129 GMT)

The description

RIC

Last

US Close previous session

PCT change

Percentage change for the current year

High offer

Low offer

Dollar index

= USD

96.3420

96.5620

-0.22%

7.069%

+96.9140

+96.2960

Euro dollar

EUR = EBS

$ 1.1292

$ 1.1258

+ 0.31%

-7.58%

+1.1299 $

+ $ 1.1221

Dollar / Yen

JPY = EBS

114.0200

113.5600

+ 0.41%

+ 10.36%

+114.2550

+113.6300

Euro / yen

EURJPY =

128.76

128.07

+ 0.54%

+1.45%

+128.8100

+128.0000

Dollar / Switzerland

CHF = EBS

0.9246

0.9242

+ 0.05%

+ 4.52%

+0.9294

+0.9235

Pound sterling / dollar

GBP = D3

$ 1.3262

$ 1.3227

+ 0.26%

-2.94%

+1.3282 $

+ $ 1.3172

Canadian dollar

CAD = D3

1.2836

1.2864

-0.21%

+ 0.81%

+1.2935

+1.2833

Australia / Dollar

AUD = D3

$ 0.7173

$ 0.7106

+ 0.97%

-6.73%

+ $ 0.7177

+ $ 0.7093

Euro / Switzerland

EURCHF =

1.0441

1.0402

+ 0.37%

-3.39%

+1.0442

+1.0400

Euro / Pound

EURGBP =

0.8512

0.8510

+ 0.02%

-4.76%

+0.8529

+0.8487

New Zealand dollar / Dollar

NZD = D3

$ 0.6782

$ 0.6742

+ 0.63%

-5.53%

+ $ 0.6787

+ $ 0.6702

Dollar / Norway

NOK = D3

9.0030

9.1010

-1.17%

+ 4.75%

+9.1210

+8.9780

Euro / Norway

EURNOK =

10.1700

10.2540

-0.82%

-2.84%

+10.2777

+10.1367

Dollar / Sweden

SEK =

9.0776

9.1392

-0.39%

+ 10.75%

+9.1675

+9.0736

Euro / Sweden

EURSEK =

10.2472

10.2875

-0.39%

+ 1.70%

+10.3080

+10.2448

Global exchange rateshttps://tmsnrt.rs/2RBWI5E

(Reporting by David Henry in New York and Elizabeth Howcroft in London Editing by Philippa Fletcher and Matthew Lewis)

(([email protected]; + 1-332-219-1974; Reuters messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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