US dollar falls as Fed holds rates, signals dovish tilt
TLT•The dollar declined after the Federal Reserve held rates with a slightly dovish tilt, reducing bets on a December hike; sterling struggled after a downgrade to the UK’s 2027 growth forecast, while the euro recovered and the Canadian dollar strengthened after the Bank of Canada raised rates to 2.5%.
1. Currencies react to rate decisions
The US dollar declined after the Federal Reserve held rates with a slightly dovish tilt, prompting reduced bets on a December hike. Sterling struggled after the UK Office for Budget Responsibility sharply downgraded its 2027 growth forecast; the euro recovered from multi-month lows as French bond yields eased, while the Canadian dollar strengthened after the Bank of Canada raised rates to 2.5%, as expected.
