Stock Market Live Update: Dollar rose due to Fed being in no hurry to reduce rates
The dollar was above its recent low on Thursday and remained bullish even after minutes from the Federal Reserve showed policymakers are in no rush to cut interest rates and many are open to a hike if inflation persists. US yields were higher and the dollar’s overnight gains against the euro and yen strengthened in early trading in Asia, keeping the euro below $1.18.
The Australian dollar remained at $0.7045 after employment data showed the unemployment rate remained at a multi-month low of 4.1%.
The New Zealand dollar took a hit, posting its biggest percentage decline since last April’s tariff attack, which dampened market expectations, after the central bank sounded cautious on future interest rate hikes. The yen was hit by a stronger dollar overnight, and the Trump administration blocked $36 billion worth of projects as the first investment under Japan’s $550 billion US investment pledge. It was down 1% overnight and was steady at 154.78 against the dollar on Thursday, down from the 152 level following Prime Minister Sanae Takaichi’s landslide election victory last week. The yen has been falling for several years due to low local interest rates and concerns about Japan’s budget outlook, but has recently received support from expectations for economic growth.