The dollar stabilizes amid anticipation of the US Federal Reserve’s interest rate decision


The dollar settled Thursday, September 15th, near recent highs, supported by expectations the US Federal Reserve will continue to tighten monetary policy aggressively in its bid to rein in inflation, while the yen faltered following a sharp rise the previous day.

The dollar rose 0.28% once morest the yen at 143.58, following falling 1% on Wednesday on news that the Bank of Japan has conducted a review of exchange rates with banks, which means a possible willingness to buy the yen.

The euro fell back once morest the dollar, falling 0.15% to $0.99635, a level not far from a 20-year low of $0.9864, which was hit last week.

The British pound also fell 0.26% to $1.15115.

The dollar index, which measures the value of the US currency once morest a basket of six currencies including the euro, settled at 109.84, maintaining a gain of 1.5% since Tuesday, when US data showed inflation rose more than expected.

This prompted the markets to prepare for an expected hike by the US Federal Reserve, as it had no choice but to go ahead with another big hike in its rate setting meeting next week.

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