Business News Asia
The U.S. dollar weakened against major currencies in a basket of currencies on Wednesday (July 27) after the Federal Reserve raised interest rates by 0.75%, as expected.
- The dollar index against the six major currencies in a basket of currencies fell 0.7% to 106.4420.
- The dollar weakened against the yen at 136.48 yen from 136.68 yen.
- The dollar weakened against the Swiss franc to 0.9593 francs from 0.9629 francs.
- The US dollar was also lower against the Canadian dollar at 1.2834 Canadian dollars from 1.2896 Canadian dollars.
- The euro strengthened against the US dollar at $1.0198 from $1.0126.
- The pound rose to $1.2166 from $1.2029.
- The Australian dollar rose to $0.7000 from $0.6933.
The dollar weakened after the Fed raised interest rates for a second straight month by 0.75% to curb inflation, which had reached its highest level in 40 years.
The Fed’s Monetary Policy Committee (FOMC) voted unanimously, 12-0, to raise the short-term interest rate by 0.75% to 2.25-2.50%, as expected by financial markets.
The Fed raised interest rates for the second straight month by 0.75%, the sharpest move since the Fed designated short-term rates as a key monetary policy tool in the 1990s. The benchmark rate now stands at 2.25-2.50%, the highest level since December 2018.