FX.co ★ Dollar Holds Gains After Fed

The dollar index hovered around 98.8 on Wednesday following the Federal Reserve's anticipated decision to cut the federal funds rate by another 25 basis points. This adjustment marks the lowest borrowing costs observed since 2022. However, the decision was met with dissent from two officials: Governor Miran advocated for a more significant half-point reduction, while Kansas City Fed President Jeff Schmid favored maintaining the current rate. Additionally, the Fed announced its intention to halt the reduction of its securities holdings starting December 1st. In parallel developments, investors are focused on the upcoming meeting between U.S. President Trump and Chinese President Xi Jinping, which is expected to establish a framework that might suspend higher U.S. tariffs and China's controls on rare earth exports. The U.S. dollar showed notable strength against the British pound, the Swiss franc, and the Japanese yen.