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Fed keeps rates unchanged, dollar mostly lower as yields rise

The Fed dropped further forward guidance, and Treasury yields climbed along the curve, lifting pressure on equities while EUR, GBP, and CAD gained.

Reported · Written up by our desk · Major Pairs

The Federal Reserve left interest rates unchanged as expected, but commentary from Chair Kevin Warsh highlighted a continued move away from forward guidance, stressing instead that the economy, inflation, and the bond market will determine the path of rates, according to Forexlive.

That shift coincided with a sharp rise in Treasury yields, with the 10-year yield up 8.1 basis points to 4.685% and the 30-year up nearly 12 basis points to 5.211%, while the 2-year climbed slightly to 4.264%. Investors appeared to reprice the next policy move amid greater uncertainty, weighing on stock valuations.

The U.S. dollar finished the session mostly lower, with the EUR up 0.70% versus the greenback, the GBP rose 0.56%, and the CAD gained 0.43%, while the CHF fell 0.70% and the JPY was down 0.24%. Stocks also ended near session lows, as higher long-term yields pressured technology and AI related shares after recent gains, Forexlive reported.

Outside of FX, crude oil jumped $5.30 to $84.63 on geopolitical concerns, gold rose nearly 1% on continued safe-haven demand, silver advanced, and Bitcoin slipped 0.5%, as reported in the market wrap.

Latest closeGold $4,134.80 ▲2.4%|Silver $58.41 ▲1.9%|WTI crude $84.41 ▲6.5%

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