homevideos Newsmarket NewsEquities rally and dollar retreats from 20 year high as Fed raises interest rates by 75 bps

Equities rally and dollar retreats from 20-year high as Fed raises interest rates by 75 bps

The US central bank raised interest rates by 75 basis points — as widely expected — in a historic move to tackle a 40-year peak in inflation. The dollar has fallen, equities have rallied and there is a bit of a reaction on the SGX Nifty, which is indicating a higher start.

By Prashant Nair Jun 16, 2022 9:08:53 AM IST (Updated)

The US central bank raised interest rates by 75 basis points — as widely expected — in a historic move to tackle a 40-year peak in inflation. Equities have rallied and the dollar retreated from a 20-year high.

The dollar had scaled new heights as US yields rose, but it lurched lower after Chair Jerome Powell's press conference.

A lot of prepositioning that has been seen in the market has been reversed because of this. Going into the US Federal Reserve’s meeting, the pre-positioning was bearish and that has flipped over to positive.