Dollar remains weaker after Fed raises United States rates to 1.5%

Dollar remains weaker after Fed raises United States rates to 1.5%

In a note to clients on Thursday morning, United Overseas Bank economist Alvin Liew wrote: "One highlight. was the change in the language that "labour market conditions remain strong", versus "labour market conditions will strengthen somewhat further" in November, and some interpreted this as the Fed expects the USA job market improvement to slow".

The U.S. dollar weakened on Wednesday after consumer price data showed sluggish inflation, adding to concerns the Federal Reserve will be less able to execute multiple rate increases next year. Wall Street was expected to open flat, with futures for the Dow and S&P 500 indexes trading flat. The rate increase - which raises the rate to a target range of 1.25 to 1.5 percent - is the third this year. The so-called core consumer price index, which excludes food and fuel, increased 0.1% in November from the prior month and 1.7% from a year earlier, less than the median projections of economists, a U.S. labor department report showed on Wednesday.

Fed Chair Janet Yellen says the prospect of tax cuts has been built into Fed forecasts for some time, and the central bank does not expect a major boost to growth.

Meanwhile, rallied 0.28% to $3.062 a pound.

More news: Virginia house arrest is ending for Paul Manafort

CMC Markets analyst Margaret Yang said the regional malaise was likely due not to the Fed's move but to the People's Bank of China.

This was, again, reflected in the FOMC's statement accompanying the rate hike.

Ko said market expectations for interest rate could be volatile though market fluctuation, caused by the Fed's rate hike overnight, was not big. However, year-over-year core inflation was below expectations, rising just. At present, the Fed expects inflation to hover around 1.7 percent by year's end. Healthy economic growth of 3 percent or higher is expected for Q1, Q2, and possibly Q4 of 2018.

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