Following the recent hikes on the Fed meeting, the US dollar has trimmed gains against the majors, though the US Federal Reserve meeting resulted in an upward revision of the interest rate.
After the June meeting of the US Federal Reserve that took place on Wednesday, the regulator decided to increase the interest rate by 0.25 p.p. to 1.75-2.00%. The Fed Chairman Jerome Powell stated that an upward decision was related to the healthy state of the economy in the USA. Moreover, he added that they would control and secure step-by-step monetary tightening without sharp moves.
Notably, hints for two more rate revisions could be seen in the forecasts of the Central Bank, which means the total number of the increases can be in line with the market expectations for 2018.
This morning the US dollar-to-yen exchange rate dropped to some 109.96 (110.34 earlier). The greenback also lost positions against the sterling and franc by 0.1% and 0.15% respectively.
Positive dynamics was posted by euro too. Specifically, the European currency rose against the US dollar to $1.1816 ($1.1791 earlier). As it was reported earlier, the euro has gained about 0.4% vs the greenback lately.
Notably, the euro-to-yen also weakened, reaching 129.89.
The Australian currency showed negative development against the majority of the currencies, which can be explained by weak labour market data. According to the statistics, the number of employed added 12,000 in May, with the expectations of staying at 19,000. Meanwhile, the jobless rates dipped from 5.6% to 5.4%.