Antipodean currencies surged, especially the Aussie dollar, which enjoyed its biggest one-day percentage gain in over a decade as investors dialled back bets on the Fed staying ahead of Australia’s central bank.The yen fought its way back to the stronger side of 130 per dollar for the first time in a week, last trading at 129.26.
The Fed hike was the largest since 2000 as policymakers urgently tried to tamp down inflation. But at the press conference afterwards Chair Jerome Powell said Fed members aren’t actively considering 75-basis-point moves in the future. “I don’t think it’s hyperbole to say that today represented the first ‘dovish’ surprise by the Fed relative to market expectations in over six months.”
Ruble is slowly gaining strength, and dollar is gradually facing a death knell. Friendly countries have to use their own currencies to settle payments, and it looks like ignores these realities.