Dollar dazzles after US rate cut but stocks blindsided

News Image

By MG News | August 01, 2019 at 05:03 PM GMT+05:00

0:00

August 1, 2019: The dollar pushed higher on Thursday following the US Federal Reserve's first rate cut in more than a decade but a lack of clear signals on future easing whipsawed equity markets.

The move to ease the cost of borrowing had been well telegraphed and was meant to inoculate against global risks washing onto American shores.

Fed chair Jerome Powell said the US central bank decided on a 25-basis-point cut in the rate to "insure against downside risks from weak global growth and trade policy uncertainty".

He told reporters he remains confident in the American economy and sees no sectors ready to go "bust".

Some in the markets, as well as US President Donald Trump, thought the Fed might go for a bigger cut and signal that further easing was on the way, but Powell declined to commit to, or rule out, further cuts.

Moreover, the decision to cut rates on Wednesday wasn't unanimous, with two members voting against.

"Investors quickly came to the conclusion that, with an 8-2 vote and a reluctance to commit to further cuts, the Fed was less dovish than they had believed," said analysts at Moneycorp.

"They marked down equity prices and took the US dollar higher."

The Fed decision sent the US dollar rallying to its highest level in more than two years against the euro and the pound.

APP

Related News

Name Price/Vol %Chg/NChg
KSE100 133,348.24
123.02M
-0.02%
-21.90
ALLSHR 83,187.42
458.85M
0.13%
106.27
KSE30 40,666.30
40.52M
-0.10%
-39.00
KMI30 192,005.56
49.10M
-0.30%
-575.12
KMIALLSHR 55,817.63
259.76M
-0.03%
-18.09
BKTi 36,423.84
8.00M
0.29%
106.66
OGTi 28,472.28
3.89M
-0.25%
-70.68
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 108,615.00 108,880.00
107,680.00
160.00
0.15%
BRENT CRUDE 69.36 69.50
69.03
-0.22
-0.32%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
2.90
3.07%
ROTTERDAM COAL MONTHLY 106.00 106.75
106.00
0.25
0.24%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.65 67.97
67.40
-0.28
-0.41%
SUGAR #11 WORLD 16.25 16.46
16.07
-0.13
-0.79%

Chart of the Day


Latest News
July 08, 2025 at 12:04 PM GMT+05:00

Saudi Riyal available at PKR 76.4 in open market


July 08, 2025 at 11:55 AM GMT+05:00

NBP leads Pakistan’s banks in shareholder value surge


July 08, 2025 at 11:39 AM GMT+05:00

Pakistan-Afghanistan railway talks progress


July 08, 2025 at 10:42 AM GMT+05:00

Pakistan moves to regulate crypto with PVARA approval



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg