Dollar Rebounds After Fed Statement
As anticipated, the Fed announced it would begin from next month to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities acquired in the years after the 2008 financial crisis. The dollar index was up 0.1 percent at 92.623 and near a two-week high of 92.697 set overnight, when it added 0.8 percent.
Dollar Extended Its Gains Against Euro
The euro is recovering from the losses suffered on Wednesday, when the common currency’s slide against the dollar nudged it away from a 21-month high of 134.160 set on Tuesday.
Kiwi Bounces as US Gains
The New Zealand dollar was down 0.3 percent at $0.7334, its rally the previous day petering out against a broadly stronger dollar. The kiwi soared to a 1-1/2-month high of $0.7435 on Wednesday after a poll showed New Zealand’s ruling National Party pulled ahead of the rival Labor Party ahead of a general election this weekend.
Dollar Hits 2-Month High Vs Yen On Heightened Fed Hike Expectations
The dollar rose to a two-month high against the yen on Thursday after a hawkish-sounding Federal Reserve heightened expectations for an interest rate hike in December.
Gold hits 3-week low
Gold dropped to its lowest level in over three weeks at $1295.65 on Thursday as a stronger US dollar and the increasing likelihood of another Federal Reserve interest-rate hike this year curbed demand.
Oil Prices Dip Due to Hike in US Crude Production
Oil prices dipped during Thursday’s trade due to hike in US crude inventories and production as well as stronger dollar. US oil production has largely recovered from the shutdowns following Hurricane Harvey, currently standing at 9.51 million barrels per day (bpd), up from 8.78 million bpd directly after the storm hit the US Gulf Coast.