As the Fed came out of its conclave with the first interest rate increases that lead into 2023, the USD was pushed to the highest level, post-pandemic, in nearly 2 months. Fed Chairman elucidated on the matter, claiming the better health outcomes and better projections were primary motivators for their decisions.
Tracking against 6 other major currencies, the dollar increased up to 91.459 in Asia, a wide margin. Its evident that the USD capitalized on its success in overnight trading, MetaNews found.
But there was one hopeful contender for the spotlight today. New Zealand. That’s right, apparently the Kiwi economy surged past expectations for the first quarter and slammed through a .4% increase overnight.
Despite a promise to keep increases modest, or nonexistent for now, claiming they wish to continue encouraging employment development, a majority the Fed officials voted for at least two, interest rate increases to take place in 2023.
The deal is that projections seem to indicate an overall economic recovery of about 7%, that’s why they’re billing these increases and inflationary policies as a kind of transitional mechanism for the near future.
One expert commented on the Fed’s seemingly blind 180, saying that it does appear the Fed has pulled a hat trick for USD support in the near future.
Also, benchmark decade Treasury yield clocked in at 1.5890% in Asian markets, after rallying to 1.5940% from its lowest at 1.4820% today.
Increasing by about 1%, the dollar, compared with the euro, is sitting pretty at $1.1984 and this has been a larger than expected increase, as I’m sure you’ve noticed.
The dollar also saw increases against the yen, at 110.825 yen per dollar. This is a level not seen since April 1 2021, adding to a 0.6% rally, overnight. As the Fed came out of its conclave with the first interest rate increases, we saw a renewed confidence in the dollar.