Array
The U.S. dollar rallied in Asian trading on Thursday after the Federal Reserve signaled rate hikes later in the year, while China’s and New Zealand’s currencies fell on signs of weakness in those economies.
The market’s attention is now turning to other central bank decisions late this week, with the yen sliding to its weakest this year as the Bank of Japan begins its two-day policy meeting.
The dollar index rose 0.26 percent to 103.3, recovering from a four-week low of 102.66 on Wednesday after the Fed held interest rates steady but signaled that borrowing costs would increase by another 50 basis points (bps) by end-December.
The European Central Bank announces its next rate decision on Thursday, with markets pricing in a 25 basis-point hike and another in July before a pause for the rest of the year.
