The U.S. dollar rose to a two-year high in late afternoon trades on Wednesday after the Federal Reserve cut interest rate as expected by 25 basis points and its chief Jerome Powell said that the rate cut should not be seen as "the beginning of a lengthy cutting cycle."
In his post meeting press conference, Powell described the rate cut "essentially as a mid-cycle adjustment to policy," and not the beginning of a lengthy cutting cycle. "That is not what we're seeing now, that's not our perspective now," he added.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.