CURRENCY MARKETS - Dollar rebounds after Fed goes big on rate cut
Istanbul, September 19 (Hibya) - The U.S. dollar rose broadly on Thursday, recovering from an earlier tumble in the immediate aftermath of the Federal Reserve’s outsized interest rate cut, which markets had largely priced in.
Against the yen, the dollar gained 0.58 percent to 143.12. The euro fell 0.04 percent to 1.1113 dollars, away from a three-week high hit in the previous session.
Sterling fell 0.11 percent to 1.3199 dollars after scaling a peak of 1.3298 dollars in the previous session, its strongest level since March 2022.
That came in the wake of data on Wednesday showing that British inflation held steady in August but sped up in the services sector, which the Bank of England closely watches. This reinforced bets that the central bank will keep interest rates on hold later in the day.
Elsewhere, the Australian dollar edged up 0.05 percent against its U.S. counterpart to 0.6768 dollars, while the New Zealand dollar advanced 0.04 percent to 0.6210 dollars.
Data released on Thursday showed that New Zealand’s economy contracted in the second quarter as activity fell in several industries, though the figures came in better than forecasts.
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