The U.S. dollar rebounded on Thursday after dropping to a 12-month low, following the Federal Reserve’s 50-basis-point rate cut. Fed Chair Jerome Powell signaled potential future cuts while stressing that ultra-low pandemic-era rates will not return. Despite the bounce, analysts believe the dollar may remain relatively soft compared to other major currencies.
Sterling gained ahead of the Bank of England’s meeting, with GBP/USD rising to its highest level since March 2022. The BoE is expected to hold its rate at 5% as inflation remains a concern. The euro also strengthened, while the yen weakened as markets anticipate no rate changes from the Bank of Japan in its upcoming meeting.
