Dollar pares losses after central banks raise rates

US dollars and Euro bills are pictured on September 6, 2022 in Brest, western France.

Fred Tanneau | Afp | Getty Images

The dollar pared earlier losses on Thursday after the U.S. Federal Reserve sounded close to calling time on interest rate hikes, while the Swiss National Bank and Bank of England pushed ahead with further rate increases.

The Fed raised its benchmark funds rate 25 basis points on Wednesday, but dropped language about “ongoing increases” being needed in favor of “some additional” rises.

The Fed’s hike was notable given that financial markets have been roiled by wavering confidence in banks globally following a run on Silicon Valley Bank two weeks ago and the sudden demise of Credit Suisse.

“If the banking crisis should meaningfully calm, and inflation remain stubbornly high, that could be a recipe to help revive the dollar because maybe the Fed could go back to fighting inflation at full…

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