After the last Fed interest rate meeting of the year released a dovish signal, the dollar index fell sharply, and non-US currencies, including the yuan, strengthened.
On December 14, after the Federal Reserve's interest rate decision was released, the offshore RMB exchange rate against the US dollar rose above 714 mark, up more than 600 points.
At 2 a.m. Beijing time on December 14, the Federal Reserve issued an interest rate decision showing that the target range of the federal interest rate was maintained at 525%-5.5% remained unchanged at a 22-year high, in line with market expectations. However, due to the dot plot, the economy, and Fed Chairman Powell's speech generally sending ** signals, the market expects that the current round of Fed interest rate hikes may have ended, and the dollar index fell from above 104 to below 103, and fell to a minimum of 102 on December 147417。
The dot plot shows that the current rate hike cycle may be over, while hinting at the possibility of three rate cuts next year.
"While we think the policy rate is likely to be at or near the peak of the current tightening cycle, the state of the economy has surprised the best in many ways since the pandemic, and we cannot guarantee continued progress towards the 2% inflation target," Powell said at the press conference. Powell said the Fed is prepared to tighten policy further if appropriate.
The Paper, for more original information, please **"The Paper" app).