The dollar was on the back foot on Thursday, even as the Federal Reserve kept to its hawkish rhetoric after raising rates by half a percentage point, as investors were doubtful over how much the central bank would commit to putting the brakes on growth to curb inflation.
Fed Chair Jerome Powell said overnight that the Fed will deliver more interest rate increases next year despite a possible recession in the U.S., with rates expected to peak above 5%.
That did little to sustain an initial rally to the greenback.
Against the dollar, the pound and the euro hovered near their six-month highs in early Asia trade on Thursday, after having touched those levels in the previous session.
Sterling was last 0.1% lower at $1.2415, following a 0.5% overnight gain, while the euro slipped 0.09% to $1.0673, having also risen 0.5% overnight.
The kiwi fell 0.05% to $0.6456, though it was similarly not far off the six-month peak of $0.6513 it hit this week.
Although the dollar had received a boost in the immediate aftermath of the Fed’s widely expected 50 basis point rate increase and Powell’s speech, it later reversed some of those gains as markets pondered the darkening growth outlook in the world’s largest economy.
This report’s information was first seen on Zawya.com; to read more, click this link.
