Dollar Down, Despite Growing Expectations of Aggressive Monetary Tightening By


© Reuters.

By Zhang Mengying – The dollar was down on Wednesday morning in Asia, although investors bet on aggressive interest rate hikes from the U.S. Federal Reserve meeting.

that tracks the greenback against a basket of other currencies was down 0.23% to 105.27 by 12:27 AM ET (4:27 AM GMT).

The pair was down 0.29% to 135.09. The pair hit a fresh 24-year low.

The pair jumped 0.48% to 0.6900, and the pair edged up 0.21% to 0.6226.

The pair was down 0.28% to 6.7224, while pair gained 0.18% to 1.2014.

Official data showed on Wednesday that China’s in May year-on-year, which was better than market expectations. The April reading was a 2.9% decline, while forecasts prepared by predicted a drop of 0.7%. However, the new COVID-19 outbreaks and the following curbs added worries about the second largest country’s uncertain recovery path.

The later in the day. The central bank is expected to raise interest rates by 75 basis points as the surged 8.6% year-on-year in May, the largest in 40 years.

“Given current aggressive market pricing, there is a risk the (Fed)is deemed ‘not hawkish enough’, pulling down U.S. interest rates and the USD modestly after the meeting,” said CBA analysts in a morning note.

“In our view, it will take more than a 75bp hike tomorrow, or a nod to a 100bp hike for the FOMC’s July meeting, to push the USD up significantly after the FOMC meeting.”

Investors now also await policy decisions from global central banks. The will hand down its policy decision on Thursday, and the will hand it down the day following.

On the data front, the released on Tuesday rose 0.8% month-on-month in May.

In cryptocurrencies, stabilized at around $22,000.

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