Global Currencies Sway as Fed's Interest Rate Decision Looms

The U.S. dollar remained strong as investors awaited the Federal Reserve's interest rate decision, impacting major currencies like the Australian and New Zealand dollars. The Fed is expected to cut rates and provide economic projections for 2025. Global markets and other central banks are also closely monitored.

The U.S. dollar maintained its strength on Wednesday as global investors eagerly anticipate the Federal Reserve's upcoming interest rate decision, which could significantly impact international currencies. This has already led to fresh lows for the Australian and New Zealand dollars.

The Fed is widely expected to reduce interest rates by 25 basis points at the conclusion of its two-day policy meeting. Investors keenly await policymakers' economic projections for 2025, particularly regarding further rate cuts next year, following robust U.S. economic data showcased by a surprising 0.7% increase in retail sales last month.

Meanwhile, global markets are observing potential tariff and tax implications under the forthcoming Trump administration. In parallel developments, other central banks like Japan's and the U.K.'s are also being monitored closely as they make forthcoming rate decisions, affecting global currency standings.

(With inputs from agencies.)