Central banks' rate decisions affect global currencies, with Fed leaning hawkish and RBA more dovish.

From Investing.com: 2024-12-24 05:22:00

The dollar strengthened against most currencies as the Fed’s hawkish outlook on monetary policy drove the rebound. The Fed cut rates by 25bps but suggested only two more reductions may be needed in 2025. In contrast, the RBA’s shift towards dovishness led to the Aussie’s decline, exacerbated by concerns over US-China trade tensions. The yen, despite the BoJ’s rate-hike cycle, hovered near a five-month low due to disappointment over no immediate rate increase. Governor Ueda emphasized the need for more information before acting, hinting at potential intervention if the yen weakens further against the dollar.



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