18.09.202512:56:51UTC+00Dollar Gains Ground

On Thursday, the dollar index rose toward 97.3, recovering slightly from the lows reached earlier in the week. This movement came as traders assessed the implications of the Federal Reserve's initial interest rate reduction of the year and jobless claims exceeding expectations. Market volatility followed the rate decision and Fed Chair Powell's press conference, during which he described the rate cut as a "risk management" measure, emphasizing that no path is without risks. The Fed also hinted at an additional 50 basis points of cuts within the year, with a further 25 basis point reduction anticipated in 2026. Concurrently, initial jobless claims saw a significant drop, reaching 231,000 from a four-year peak, alleviating some concerns about labor market fragility. The dollar generally strengthened against both the euro and the pound, the latter losing early gains after the Bank of England maintained its borrowing rates, as expected, while decelerating its balance sheet reduction. Meanwhile, the Bank of Canada lowered rates by 25 basis points, whereas the Bank of Japan is anticipated to maintain its current policy unchanged tomorrow.