The U.S. dollar fell significantly on Thursday. This is because investors, convinced of the prospect of slower interest rate hikes by the Fed, began to bet on riskier assets.
Recently, the long-awaited results of the November 1-2 Fed meeting were announced. They indicate that officials were content to move to a less aggressive policy stance, Reuters reports.
Carol Kong, a currency strategist at Commonwealth Bank of Australia (CBA), noted that it is now almost certain that the FOMC will slow the pace of policy tightening from December. At the same time, the CBA expert warned that the markets are overly optimistic about the possibility of an imminent end to the tightening cycle. She also stressed that the U.S. dollar still has a strong support because of China's Zero-COVID policy.
U.S. markets will be closed on Thursday due to the Thanksgiving holiday, and liquidity is likely to be lower than usual.