Dollar Rises Amid Signs Fed Will Hold Off On Interest Rate Cuts

New york: The dollar surged on Thursday, recovering from recent lows, as insights from the Federal Reserve's meeting minutes indicated that policymakers are not in a rush to cut interest rates. The minutes also revealed that several members are open to the prospect of raising rates if inflation continues to persist at high levels. According to Yemen News Agency, the dollar maintained its strength against both the euro and the yen, with the euro hovering just below $1.18. Meanwhile, the Australian dollar remained stable at $0.7050, following employment data that showed the unemployment rate holding at a multi-month low of 4.1 percent. In contrast, the New Zealand dollar faced pressure, posting its largest percentage drop since tariffs were imposed in April. This was attributed to the central bank's cautious stance on future interest rate hikes, which did not meet market expectations, causing the New Zealand dollar to lose approximately 1.4 percent on Wednesday and trading just below $0.60 in Asian markets. T he euro remained steady at $1.1790, influenced by reports that European Central Bank President Christine Lagarde plans to leave her position before the end of her term in October next year. Sterling also remained stable at $1.3482. The yen experienced a decline due to the stronger dollar and the Trump administration's announcement of $36 billion in projects, marking the initial investments under Japan's commitment to invest $550 billion in the United States. The yen fell by 1% overnight and weakened further to 155.25 against the dollar on Thursday, down from the 152 level it reached last week following Prime Minister Sanae Takaichi's decisive election victory. Trading in Asia was subdued due to holidays in Hong Kong, China, and Taiwan, with the yuan remaining steady at 6.90 against the dollar in offshore trading.