21 March | Dollar

Dollar strengthens after Fed signals no rush to change rates

Dollar strengthens after Fed signals no rush to change rates

On Friday, the dollar strengthened against major currencies after the US Federal Reserve (Fed) signalled no rush to cut its interset rates, Reuters reports. 

According to the news agency, the dollar index is holding near 103.81 after rising 0.36% the day before. The index hit a five-month low of 103.19 this week. The decline was due to growing fears of a recession in the US caused by President Donald Trump's tariff policy.

The Fed kept interest rates unchanged on Wednesday and signaled the possibility of two quarter-point reductions later this year. The chairman of the US central bank Jerome Powell states that the regulator will not be in a hurry to change rates. He thus highlights that the Fed is struggling to make decisions amid Trump's erratic trade policies, Reuters says. 

Meanwhile, Pepperstone analysts expect a turn in the US currency. There is an increased risk of market players trimming back short positions on the dollar due to the imposition of US reciprocal tariffs on April 2, the experts say.

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