Last Added

Fed increases interest rate by 25 base points in the official meeting held on yesterday. The USD continued its gains against major and regional currencies following the Fed's three-fold increase in interest rate hikes for 2017. The dollar has been prepared for the last 2 years against the Euro and for the last 10 months against the Japanese Yen.  Developing market assets and currencies were prepared for the worst month of the month following the Fed's Wednesday monetary policy decisions. The Fed signaled that it might adopt a more hawkish stance than expected next year with interest rate hike. The USD carried its gains to the third day. The Fed has increased its borrowing costs by 25 base points and has raised its forecast for the 2017 interest rate increase period by two incremental surcharges. This is a problem for markets where the higher interest rate in dollar terms reduces risk appetite for riskier assets.

Comment Send