(Reuters) The dollar came off its lows but remained weaker overall on Wednesday after the Federal Reserve’s guidance on its tightening cycle was less dovish than expected, even though it forecast fewer interest rate hikes than it had in September.
Juan Perez, senior currency trader at Monex Consulting in Washington, said he still sees the dollar as resilient because Wednesday’s rate hike “does represent a higher return for investors.”
“We predict the dollar will swing as it closes the year, but will be on a downward trend if indeed the Fed admits more caution and monitoring of lagging indicators is needed before further tightening,” he added.
