The Limited Times

Now you can see non-English news...

Euro briefly hits $1.10, highest in 10 months, after Fed decision


The US Federal Reserve hiked its rate on Wednesday to a range of 4.50% to 4.75%, the highest in 15 years.

The euro rose sharply against the dollar on Wednesday, briefly reaching the symbolic threshold of $1.10, its highest level in almost 10 months, after the announcement of the decision of the American central bank (Fed), which raised its key interest rate by a quarter of a point.

The move came despite statements from Fed Chairman Jerome Powell, who said he expected

“several additional rate hikes”

in the coming months.

The single currency rose to 1.1000 dollars for one euro, a first since the beginning of April 2022. Around 8:35 p.m. GMT, it was displayed at 1.0996 dollars, up 1.22%.

The Fed raised its rate on Wednesday, as expected, to a range of 4.50% to 4.75%, the highest in 15 years.

During his speech, Jerome Powell held a speech of firmness, affirming that

“the task


not finished”

in the fight against inflation.

“We still have work to do

,” he hammered.

Read alsoUnited States: inflation slows, the Fed begins a delicate turn

“It would be very premature to declare victory

,” insisted the central banker.

However, currency traders were cautious about the extent of the monetary tightening still to come.

Their central scenario is that of a last rate hike in March, of another quarter point, which would constitute a peak of this cycle.

They also expect at least one rate cut, possibly two, in the second half of 2023.

“Not appropriate to cut rates this year”, says Powell

The chairman of the Fed, however, said Wednesday that it would be

“not appropriate to lower rates this year or to ease monetary policy”


For Jerome Powell, this divergence of view “

is largely due to the fact that the market anticipates that inflation will slow more rapidly”

than the Fed expects.

"The market has apparently decided that (Jerome)


's press conference

was less offensive than expected ," Matthew Weller of StoneX said in a note.

The reaction of the bond market also reflected the vision of investors.

The yield on 2-year US government bonds, considered to better reflect medium-term monetary policy expectations than the 10-year rate, plunged to 4.12% from 4.20% at the close on Tuesday.

Source: lefigaro

All business articles on 2023-02-01

You may like

Life/Entertain 2023-01-16T07:57:44.512Z

Trends 24h


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.