DXY: Dollar strengthens as SNB surprises with rate cut
Currency markets were roiled as the Swiss franc plunged after a surprise SNB rate cut, while the yen slid despite the BOJ's policy pivot.
Central bank bombshells rocked currency markets this week, with the Swiss National Bank's unexpected interest rate reduction sending the franc into a tailspin against major peers.
The SNB's dovish pivot triggered the franc's sharpest daily drop in over four months...
In a week of high-profile monetary policy decisions, the Bank of Japan abandoned its long-standing negative rate stance, lifting its benchmark from -0.1% to 0.1%. However, the yen paid little heed, weakening beyond 151 per dollar.
Berto Tordecilla
While the Federal Reserve held rates steady at 5.25-5.5%, it signalled a higher bar for imminent cuts, paring market pricing for 2024 easing to around 80 basis points.
The British pound bore the brunt of the Bank of England's hawkish pause, shedding 0.7% against the greenback to trade under $1.2635.
Amid the frenzy, the mighty dollar flexed its muscles, with USD/JPY climbing 1.6% to intervention-sensitive levels. EUR/JPY powered to a 15-year peak above 165.00, while AUD/JPY breached 100 yen for the first time since 2014.
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