U.S. dollar stabilized ahead of the Fed’s minutes release

The U.S. dollar has stabilized ahead of the Federal Reserve’s (Fed’s) latest minutes release. This might be driven by investors’ more risk-averse behavior, as they await information on the following monetary policy course, outlook for inflation and interest rate hikes.

Minutes of the Fed’s meeting are to be released today, on November 23. Expectations of many are focused on the central bank’s announcement of a possible slowdown in rate hikes. In November, Fed Chair Jerome Powell outlined this probability, although he also highlighted the fact that borrowing costs would continue to rise at the same pace.

At the same time, the U.S. central bank continues to demonstrate its intention to fight inflation by monetary policy tightening. The forecasted rate peak of 5.5% was even shifted to September 2023, which is sooner than it was previously stated.