The US dollar maintained its highest level in more than two months on Thursday, while markets strengthened their expectations that the Federal Reserve (the US central bank) would raise interest rates this year, which led to increased pressure on the Japanese yen and pushed it towards the area of possible intervention.
The US Central Bank kept interest rates unchanged in the range of 3.50% – 3.75% when its new president, Kevin Warsh, began a new era with a comprehensive review of monetary policy. However, nearly half of policymakers currently expect to raise interest rates this year amid growing concerns about inflation.
Concern over developments in the Gulf region continued to dampen risk appetite.
