The US FOMC yesterday decided to raise interest rates by 0.5%. It was suggested that interest rates would be raised by 0.5% in June and July in the future. It was also announced that the balance sheet will be reduced in June.
However, at the Powell press conference, a negative view was expressed regarding the 0.75% range of significant rate hikes observed in some markets. The reaction of dollar selling spread after the event was passed and the rate hike was denied. The dollar-yen pair rebounded from the 130-yen level to the 128-yen level at one point. Eurodollar rebounded from 1.05 to 1.06. However, the US monetary authorities have a strong stance on inflation, and it seems that the predominant view is that the dollar will return to a stronger dollar after the adjustment movement has run its course.
In the overseas market after this, I would like to check how long the flow of dollar selling after the US FOMC will continue.
At one point, although it was sold significantly, repurchases were predominant in the dollar yen. It is assumed that it will be easier to buy USD again gradually.
