The U.S. dollar fell close to four-month lows in early European trade Thursday after the Federal Reserve signaled rate cuts next year, with the European Central Bank and the Bank of England set to meet later in the session. The U.S. central bank kept interest rates on hold at the conclusion of its two-day meeting on Wednesday, as widely expected, while its latest economic projections indicated its lengthy hiking cycle has ended and lower borrowing costs are coming in 2024. Additionally, Fed Chair Jerome Powell declined to push back against rate cut expectations, saying a discussion of cuts in borrowing costs is coming "into view."
Investing.com-- Most Asian currencies rose on Wednesday as less hawkish signals from Federal Reserve officials ramped up hopes for an early interest rate cut in 2024, which put the dollar near four-month lows.
Investing.com-- The Reserve Bank of New Zealand kept interest rates steady on Wednesday as expected, with the bank stating that inflation still remained too high and that it could potentially hike interest rates further to quell price pressures.