Dollar Falls On Hawkish Fed Monetary Policy

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The US dollar tumbled on Wednesday after the US Federal Reserve took hawkish monetary policy stance but without delivering a tougher surprise that might have added to its weeks-long momentum.

The dollar index, which had gained 3 percent since the start of the Russia-Ukraine war on February 24 and 10 percent since May, fell as much as 0.6 percent on Wednesday as traders parsed Fed statements following a two-day meeting.

“There were no additional hawkish surprises,” Reuters quoted as saying Erik Bregar of Silver Gold Bull Inc, adding that traders seemed to have been expecting too much more from the Fed. “That explains why some of these hawkish bets are being pared back a bit,” he said.

The dollar lost value to the euro and the British pound, both of which had been up earlier in the day on hope for a compromise in Russia and Ukraine peace talks.

The euro and pound both gained 0.7 percent, with the euro trading at $1.1032.

The Fed raised interest rates by the…

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