The US Dollar is Falling From Its Highest Level in a Month

The US dollar retreated Thursday, September 23rd from its highest level in a month, which is reached after the US Federal Reserve paved the way for raising interest rates next year, and improving sentiment in global markets encouraged dealers to sell the dollar.

The Fed also signaled a tendency to tighten monetary policy, paving the way to begin limiting bond purchases in November, and at a faster pace than analysts had expected.

Nine of the 18 US central bank decision-makers expected to raise borrowing costs next year, prompting the markets to expect to bring forward the date of the first-rate hike to January 2023.

Dollar and bond yields fell with many speculating that the Federal Reserve would have left the room to step back if needed.

China markets were relatively calm despite expectations that real estate developer Evergrande would not be able to honor an interest coupon on its bonds on Thursday.

By 07:45 GMT, the dollar index was at 93.277, down a quarter of a percentage point on the day after rising to 93.526.

The euro rose to 1.1716 dollars, the highest level in a month, and the pound rose ahead of the Bank of England meeting, which is expected to show a tendency to tighten monetary policy.

The Norwegian krone was stable against the dollar, while it rose 0.2% against the euro, ahead of the central bank’s meeting, which is expected to raise interest rates.

Earlier in Asia, markets were quiet due to a holiday in Japan and the yuan approached a one-month low against the dollar, but the Australian dollar rose 0.3% against the dollar to $0.7261.