The dollar rose 0.14% to 158.045 against the yen ahead of the Bank of Japan’s two-day meeting ending on Friday. (Reuters pic)SINGAPORE: The US dollar steadied on Thursday after the Federal Reserve held interest rates as expected while hinting upcoming inflation data would influence future policy moves, leaving investors uncertain about the rates outlook.
The Fed opted to delay any changes to borrowing costs until after next week's midterm election in a 10-2 decision, which came with an upgraded assessment of an economy that the central bank now says is growing at a "strong pace".
That, along with the confidence expressed by Fed chair Kevin Warsh that inflation can be lowered to the 2% target without having to "throw sand in the gears" and slow growth or raise unemployment, pushed traders to rein in bets for rate hikes in 2027.
