Dollar Swoons As Fed Scales Down Rate Hike Forecasts — Nigeria Today
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Dollar Swoons As Fed Scales Down Rate Hike Forecasts

The dollar tumbled on Thursday, lifting world shares to their highest level of the year, after the Federal Reserve scaled down its own expectations of the number of U.S. rate hikes likely over the next nine months. The Fed, via its ‘dot plot’ system, which charts what rate moves policymakers expect, effectively chopped those forecasts in half, from four hikes to two for the year.

It was a signal that triggered a slump in the dollar and a surge in risk appetite that rolled from Wall Street to Asia and then into Europe, where London .FTSE, Frankfurt .GDAXI and Paris .FCHI opened 0.5 to 0.8 percent higher and bond yields fell. [GVD/EUR] Commodity markets cheered too. Brent oil jumped over $41 a barrel as a number of large producers also nailed down a date for an output freeze meeting. Industrial metals such as copper CMCU3 saw their biggest rise in two weeks. [MET/L]

But it was the currency markets that really grabbed the attention as the dollar sank to one-month and three-week lows against the euro EUR= and yen JPY=, and emerging market and oil and commodity-linked currencies surged. [FRX/]”Risk is thoroughly on,” said Societe Generale global head of currency strategy Kit Juckes.


The post Dollar Swoons As Fed Scales Down Rate Hike Forecasts appeared first on Nigerian News from Leadership News.

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This post was syndicated from Nigerian News from Leadership News. Click here to read the full text on the original website.


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