Fed pushes dollar to 2-month high
During its meeting this week, the Fed announced its intention to raise interest rates by 2023. This decision was prompted by stronger-than-expected levels of growth and inflation. To this end, growth forecasts were raised for 2021 and 2023. Also, the Federal Reserve estimates that inflation could be both higher and more persistent than expected. Thus, the price index forecast at the end of 2021 was increased by 100 BPS to 3.4%.
The dollar recorded a rise against its major currencies.
The EUR/USD parity fell by -2.0% to 1.186 from 1.211 last week, i.e. its lowest level since April 2021.