The US dollar is declining as risk appetite improves after the Fed

The US dollar fell Thursday, November 24, as investors flocked to risky assets after expectations of a slowdown in the rate hike in the US.

The upcoming minutes of the Fed’s Monetary Policy Committee meeting, which was held on the first and second of November, revealed that officials are very convinced that they can move now with smaller steps in raising interest rates.

The dollar index, which measures the greenback’s performance against a basket of six major currencies, fell 0.14% to 105.75.

The US central bank raised its key interest rate by 0.75 percentage points this month for the fourth consecutive time to rein in soaring inflation.

However, lower-than-expected US consumer price data boosted hopes for a more moderate pace of rate hikes. As a result, the dollar index fell 5.1% in November, heading for its worst monthly performance in 12 years.

The Japanese yen was one of the best-performing major currencies against the dollar, rising 0.5% to 138.88.

The euro rose 0.39% to $1.0435, while the pound sterling recorded, in its latest trading, an increase of 0.43% to $1.2090.

The pound jumped 1.4% in the evening after the preliminary British economic activity data exceeded expectations, although it still showed contraction.

The Australian dollar rose 0.25% to $0.675, while the New Zealand dollar rose 0.17% to $0.6255.