Dollar slips as Fed outlook shifts

Published by
Reuters UK

By Tom Westbrook SINGAPORE (Reuters) – The dollar was under pressure near seven-week lows on Thursday as U.S. bond yields fell sharply after the Federal Reserve sounded close to calling time on interest rate hikes. The Fed raised its benchmark funds rate by 25 basis points, as expected, but dropped language about “ongoing increases” being needed in favour of “some additional” rises, as it waits and watches how wobbling confidence in banks affects the economy. Futures imply only an even chance of one more hike. That’s a contrast to Europe where markets see another 50 bp or so to go, and the gap…

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