Global Currencies Sway in Wake of Federal Reserve's Steady Stance

The dollar retreated from a two-year high after the Federal Reserve signaled slower rate cuts for 2025. Meanwhile, the yen fell as the Bank of Japan maintained rates. The dollar index dropped 0.23%, impacting global currencies, with the euro and other currencies experiencing mixed fluctuations.

The dollar retreated on Thursday from a two-year peak reached the previous day, as the Federal Reserve indicated a slower pace of rate cuts in 2025. This move comes after U.S. third-quarter GDP figures revealed stronger-than-expected economic growth.

Meanwhile, the yen slid after the Bank of Japan kept interest rates steady. In the wake of these central bank decisions, global currencies experienced volatile shifts, with many rebounding in lightly traded markets as the holiday season approaches.

The dollar index eased by 0.23%, having surged more than 1% the prior day to its highest level since November 2022, with interest rate decisions from both the Fed and BOJ being pivotal influences in the currency movements.

(With inputs from agencies.)