PT Solid Gold Berjangka | Dollar Scales Fresh Peaks as Fed Cut Bets Recede
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Solid Gold Berjangka | This news excerpt provides information on the recent movement of the U.S. dollar and other major currencies in the foreign exchange market. Here are the key points:
- Dollar Strength: The U.S. dollar has reached an eight-week high against its major counterparts. This strength is attributed to traders revising their expectations for aggressive interest rate cuts by the Federal Reserve, as they perceive the U.S. economy to be resilient.
- Currency Performance:
- The Japanese yen, Australian dollar, and New Zealand dollar have all experienced declines, reaching two-month lows.
- The euro has also weakened, hitting a more than one-month low of $1.07675 against the stronger U.S. dollar.
- Dollar Index: The dollar index, a measure of the U.S. dollar’s value against a basket of other currencies, reached a peak at 104.18, the highest level since December.
- Reasons for Dollar Strength:
- The reevaluation of Federal Reserve rate cut expectations follows a robust U.S. jobs report that exceeded market predictions.
- Federal Reserve Chair Jerome Powell’s statement after the central bank’s policy meeting indicated that a rate cut in March was unlikely.
- Currency Movements:
- The Japanese yen is 0.15% lower against the dollar, reaching 148.58 per dollar.
- The Australian dollar has slid 0.33% to $0.6490.
- The New Zealand dollar lost 0.25%, last trading at $0.6050.
- The British pound (Sterling) reached its lowest point since January 17 at $1.2600.
- Source: The information is sourced from Reuters.
Overall, the news suggests that the strength of the U.S. dollar is driven by a positive economic outlook and reduced expectations for imminent interest rate cuts by the Federal Reserve.