Dollar Down as Investors Digest Fed Policy Decisions By Investing.com

By Zhang Mengying

Investing.com – The dollar was down on Thursday morning in Asia as investors digest a 75-basis points interest rate hike announced by the U.S. Federal Reserve Wednesday.

that tracks the greenback against a basket of other currencies edged up 0.15% to 104.780 by 12:57 AM ET (4:57 AM GMT).

The pair jumped 0.42% to 134.30. The will also hand down its policy decisions on Friday.

The pair edged up 0.15% to 0.7013 and the pair edged up 0.14% to 0.6293.

The pair edged down 0.18% to 6.7015, while the pair fell 0.24% to 1.2147.

The U.S. points Wednesday to tame inflation after the year on year in May, the largest since 1994.

The Fed Chair Jerome Powell said the central bank will deliver another big hike in July, but “today’s 75 basis-point increase is an unusually large one and I do not expect moves of this size to be common.”

“It’s very clear the Fed will do whatever it takes to forcefully reduce inflation and the terminal rate is going to be closer to 4% and maybe even go higher,” Northern Trust (NASDAQ:) Asset Management director of short-duration fixed income and head of credit research Peter Yi told Bloomberg.

“The Fed is on a path to higher rates and even as Powell tried to downplay another 75 basis points hike next month, he said rates are still extremely low.”

The Fed also said it will shrink its balance sheet by $47.5 billion a month, which will start from June 1 and step up to $95 billion in September.

Investors now await policy decisions from , which are due later in the day.

On the data front, , and are due later in the day.