Overambitious expectations for a dovish strategy and some disappointment at the level of ambiguity in the central bank’s guidance prevented a knockout blow on the beleaguered greenback.
The lack of a killer dovish catalyst from the latest Federal Reserve meeting triggered a near-term rally in the dollar as sizable short positions in the under-pressure currency were unwound.
Despite Chair Jerome Powell emphasizing unprecedented accommodative policy for at least three years in Wednesday’s Fed statement, a dollar gauge made its first advance in five days on Thursday to rise as much as 0.4%. It steadied on signs short-term position re-balancing was complete.
