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Dollar Strengthens After Fed Meeting

The U.S. Dollar Strengthened On Thursday, Rebounding From A Five-month Low. Investors Reacted To The Federal Reserve’s Recent Policy Decision.

The Federal Reserve Maintained Its Benchmark Interest Rate Within The 4.25%-4.50% Range. However, Policymakers Signaled The Likelihood Of Two Rate Cuts Later This Year. This Projection Influenced Market Sentiment.

According To Analysts At ING, The Fed’s Revised Projections Suggest A Cautious Approach. Although Markets Expect 65 Basis Points Of Rate Cuts In 2025, The Fed’s Stance Remains More Hawkish.

Meanwhile, Investors Are Closely Watching Upcoming U.S. Economic Data. Weekly Jobless Claims And The March Philadelphia Fed Manufacturing Index Could Impact Future Currency Movements.

Sterling Declines Before BOE Decision

The British Pound Weakened Ahead Of The Bank Of England (BOE) Policy Meeting, While The U.S. Dollar Strengthened Amid Market Adjustments. GBP/USD Fell 0.2% To 1.2956 After The U.K. Reported Stable Unemployment Figures, Adding Uncertainty To The BOE’s Next Move.

Britain’s Unemployment Rate Held At 4.4% In January, With Wage Growth Steady At 5.9% And Job Vacancies Showing A Slight Increase. These Signs Of Labor Market Resilience Could Delay BOE Rate Cuts, Especially As Inflation Remains A Concern. Meanwhile, The Dollar Strengthens As Investors Anticipate The Federal Reserve’s Next Steps On Monetary Policy.

Other Currency Movements

The Euro Fell 0.4% To 1.0854. European Central Bank President Christine Lagarde Warned About The Economic Impact Of A Potential U.S.-EU Trade War.

Meanwhile, The Swiss Franc Weakened As The Swiss National Bank Cut Interest Rates By 25 Basis Points To 0.25%. This Marked Its Fifth Consecutive Rate Reduction.

In Asia, The Japanese Yen Remained Stable, With USD/JPY Trading At 148.74. The Chinese Yuan Slipped Slightly, With USD/CNY Rising 0.2% To 7.2453 After The People’s Bank Of China Kept Its Loan Prime Rate Unchanged.

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