In the Asian session on Thursday (June 1), the U.S. dollar index fell back from its highs, and the latest price of the U.S. dollar was 104.19, a decrease of 0.04%. The move came after a Fed official warned that any decision by the central bank to keep its benchmark overnight interest rate unchanged at its upcoming meeting would not mean it was done tightening monetary policy.
The latest from the Federal Reserve:
“Skipping a rate hike at the upcoming meeting will allow the committee to see more data before making a decision on the extent of further tightening,” Jefferson said Wednesday. Expectations have been adjusted, with futures prices tied to the Fed’s policy rate implying just one-in-three chances of a rate hike in June. Earlier, markets had priced in a 71 percent chance of a rate hike after the U.S. Labor Department reported job openings rose to 10.103 million in April. Philadelphia Fed President Harker said that, for now, he is inclined to support a “skip one” rate hike at the Fed’s next meeting in June.
