Dollar retreats as fed signals end of rate hike cycle

Subscribe Search Search Sort by Relevance Title Date Subscribe ALBAWABA - The dollar declined today, Thursday, following the latest economic forecasts from the Federal Reserve, indicating that the interest rate hike cycle has concluded and that 2024 will see a reduction in borrowing costs. Both the euro and the Japanese yen surged as a result, while the European Central Bank prepares to announce its policy decision later on Thursday. The Bank of Japan is set to release its decision next week. The dollar index, measuring the U.S. currency against a basket of currencies, reached 102.87 in the latest trades after dropping to 102.77 overnight. Despite recent economic data supporting expectations that the Federal Reserve can achieve a smooth landing for the U.S. economy, Federal Reserve Chair Jerome Powell kept the option of action open, stating that "the economy surprises forecasters." Powell mentioned in a Federal Open Market Committee meeting yesterday that the historical tightening of monetary policy has likely ended. Policymakers generally agree that borrowing costs will decrease in 2024. Market focus now shifts to upcoming decisions from central banks, including the European Central Bank, the Bank of England, the Norwegian Central Bank, and the Swiss National Bank. The euro generally stabilized at $1.0882 after rising on Wednesday, while the British pound recorded $1.2623 in the latest trades. The yen, on the other hand, notably rose to around 142.80 yen to the dollar after the U.S. currency declined overnight. Regarding cryptocurrencies, Bitcoin rose to $42,904. Subscribe Sign up to our newsletter for exclusive updates and enhanced content Subscribe Now Subscribe Sign up to get Al Bawaba's exclusive celeb scoops and entertainment news Subscribe to our newsletter for exclusive updates and enhanced content Subscribe