Latest News

Dollar turns down in risk-on pivot as Fed chair talks policy

Economy4 hours ago (Dec 15, 2021 22:35)

© Reuters. A U.S. one dollar banknote is seen in this illustration taken November 23, 2021. REUTERS/Murad Sezer/Illustration

By David Henry

NEW YORK (Reuters) – Traders embraced and then turned way from the U.S. dollar on Wednesday as initial enthusiasm for higher interest rates from the Federal Reserve turned into confidence to take more risk with stocks and other currencies.

The U.S. dollar index rose as much as 0.3% right after the Fed issued a new statement on monetary policy that paved the way for three one-quarter-percentage-point interest rate increases next year.

But by the time Fed Chair Jerome Powell finished a news conference 90 minutes later, stocks were climbing to near record levels and dollar index was down 0.2%.

“That was a catalyst to move into some of the riskier currencies, like the euro, like sterling,” said Joseph Manimbo, senior market analyst at Western Union Business Solutions.

Other risk-on currencies, such as the dollars of Australia, Canada and New Zealand, also gained against the dollar, while the Japanese yen, seen as safer haven, lost.

“Wall Street is somewhat comforted that the Fed’s not on autopilot raising rates. It’s going to keep close tabs on the coronavirus and if it needs to go slower it will,” Manimbo said.

Attention now turns to meetings on Thursday of the European Central Bank and the Bank of England. The banks are trying to balance the need to support economies threatened by the coronavirus with the need to withdraw easy money to cool inflation.

The greenback has been bolstered recently by expectations that U.S. interest rates will rise faster than those in other countries. The dollar index, even after Wednesday’s up-and-down, was about 0.6% short of its highest level in more than a year.

The euro and British pound each rose about 0.3% against the dollar. The euro traded at $1.1292 and the pound at $1.3262 at 4:29 p.m. EST (2129 GMT).

The Australian dollar gained 1% to $0.7173 and the kiwi rose 0.6% to $0.6782.

Versus the Japanese yen, the dollar was up 0.4% to 114.0200.

Cryptocurrency bitcoin was up 2% to $49,225.


Currency bid prices at 4:29PM (2129 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index

96.3420 96.5620 -0.22% 7.069% +96.9140 +96.2960


$1.1292 $1.1258 +0.31% -7.58% +$1.1299 +$1.1221


114.0200 113.5600 +0.41% +10.36% +114.2550 +113.6300


128.76 128.07 +0.54% +1.45% +128.8100 +128.0000


0.9246 0.9242 +0.05% +4.52% +0.9294 +0.9235


$1.3262 $1.3227 +0.26% -2.94% +$1.3282 +$1.3172


1.2836 1.2864 -0.21% +0.81% +1.2935 +1.2833


$0.7173 $0.7106 +0.97% -6.73% +$0.7177 +$0.7093


1.0441 1.0402 +0.37% -3.39% +1.0442 +1.0400


0.8512 0.8510 +0.02% -4.76% +0.8529 +0.8487


Dollar/Dollar $0.6782 $0.6742 +0.63% -5.53% +$0.6787 +$0.6702


9.0030 9.1010 -1.17% +4.75% +9.1210 +8.9780


10.1700 10.2540 -0.82% -2.84% +10.2777 +10.1367


9.0776 9.1392 -0.39% +10.75% +9.1675 +9.0736


10.2472 10.2875 -0.39% +1.70% +10.3080 +10.2448

Dollar turns down in risk-on pivot as Fed chair talks policy

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News