News
Dollar steady as markets await Fed’s rate decision
Dollar steady ahead of Fed’s expected rate cut decision on Wednesday
Dollar steady ahead of Fed’s expected rate cut decision on Wednesday
In Short:
– The U.S. dollar stayed stable as investors await the Federal Reserve’s interest rate cut announcement.
– Asian equities rose, with the MSCI Asia Pacific Index hitting a record high amid U.S. market gains.
– The U.S. dollar stayed stable as investors await the Federal Reserve’s interest rate cut announcement.
– Asian equities rose, with the MSCI Asia Pacific Index hitting a record high amid U.S. market gains.
The U.S. dollar remained stable on Monday as investors await the Federal Reserve’s upcoming policy meeting, where the central bank is expected to announce its first interest rate cut in nine months.
Trading volumes were low due to a holiday in Japan, causing currencies to remain rangebound.
Market participants have largely priced in a 25 basis point reduction in the federal funds rate, anticipated to bring the key rate to between 4.00%-4.25%.
This marks the first easing action since December 2024.
Recent economic data indicates a cooling labour market, with jobless claims rising to the highest levels since 2021, overshadowing inflation concerns.
Market Movements
Asian equities experienced gains, continuing a global rally, with the MSCI Asia Pacific Index reaching a record high.
Chinese shares rose close to 1% despite disappointing factory and retail sales data.
This momentum follows historical closes in U.S. markets, with the Dow Jones Industrial Average surpassing 46,000.
