The dollar weakened in the frame of 108 yen after the Federal Reserve (Fed) sent a signal to slow down the rate hike in yesterday’s meeting.
At 22.32 hrs., The Thai time the dollar fell 0.27% to 108.73 yen, while the euro fell 0.19% to 124.88 yen and rose 0.05% to $ 1.1483. Which is a measure of the movement of the dollar against the six major currencies in the basket of money plus 0.06% to the level of 95.40
The Fed’s monetary policy committee (FOMC) unanimously voted to maintain short-term interest rates at 2.25-2.50% at yesterday’s meeting. Which is the first meeting of the Fed this year As the financial market anticipated
The Fed has decided to maintain interest rates today. After raising interest rates at the previous month’s meeting Which is the fourth time in the previous year and the 9th time since the Fed started to adjust monetary policy to normal in December 2015
The statement after the Fed meeting stated that The Fed will use patience to raise interest rates next time. By observing economic conditions
At the same time, the Fed’s statement cut the message. “The Fed will raise interest rates gradually,” which is a statement indicating the Fed’s rate hike. And the Fed has substituted with the message that “The Fed is pursuing a more cautious approach” which indicates changes from the same policy the Fed has used over the years.
In terms of reducing the balance sheet The statement states that The Fed is ready to review the reduction of bond holdings in the Fed balance sheet. If economic conditions indicate such need
In addition, the Fed expects that the balance sheet will remain high. After the Fed finished the balance sheet reduction
The statement states that “The Fed is prepared to use all the tools. Which includes resizing and composition in the balance sheet If the economic situation in the future makes the Fed need to use more relaxed monetary policy than using only short-term interest rate cuts “