FOREX-Dollar drops after Fed hikes rates as expected – Yahoo Finance

(Recasts with Fed decision, adds quote, updates prices) By Karen Brettell NEW YORK, May 4 (Reuters) – The dollar fell in volatile trading against a basket of currencies on Wednesday after the Federal Reserve raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years. The rate increase was widely expected. The U.S. central bank set its target federal funds rate to a range between 0.75% and 1% in a unanimous decision, with further rises in borrowing costs of perhaps similar magnitude likely to follow. The Fed also said that its $9 trillion balance sheet would be allowed to decline by $47.5 billion per month in June, July and August and the reduction would increase to as much as $95 billion per month in September. The dollar index was last at 103.20, after getting as low as 103.07 immediately after the Fed statement. The euro rose to $1.0553, after briefly reaching$1.0573. The dollar was 129.87 against the Japanese yen, after briefly dropping to 129.75. ======================================================== Currency bid prices at 2:16PM (1816 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 103.2000 103.4400 -0.21% 7.879% +103.6000 +103.0700 Euro/Dollar $1.0553 $1.0519 +0.34% -7.16% +$1.0573 +$1.0507 Dollar/Yen 129.8650 130.1300 -0.19% +12.82% +130.2000 +129.7500 Euro/Yen 137.07 136.92 +0.11% +5.19% +137.2700 +136.7200 Dollar/Swiss 0.9809 0.9788 +0.21% +7.54% +0.9846 +0.9784 Sterling/Dollar $1.2507 $1.2496 +0.10% -7.51% +$1.2537 +$1.2468 Dollar/Canadian 1.2799 1.2842 -0.34% +1.22% +1.2853 +1.2787 Aussie/Dollar $0.7167 $0.7096 +0.97% -1.44% +$0.7182 +$0.7089 Euro/Swiss 1.0351 1.0295 +0.54% -0.15% +1.0376 +1.0285 Euro/Sterling 0.8436 0.8418 +0.21% +0.44% +0.8449 +0.8404 NZ $0.6464 $0.6436 +0.40% -5.59% +$0.6475 +$0.6423 Dollar/Dollar Dollar/Norway 9.3890 9.4000 -0.31% +6.37% +9.4265 +9.3650 Euro/Norway 9.9113 9.8823 +0.29% -1.01% +9.9366 +9.8673 Dollar/Sweden 9.8506 9.8606 +0.18% +9.21% +9.9010 +9.8393 Euro/Sweden 10.3970 10.3779 +0.18% +1.59% +10.4121 +10.3750 (Editing by Nick Zieminski)
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Shares of Amazon (NASDAQ: AMZN) were up more than 2% in early trading Tuesday, defying the Nasdaq Composite index, which opened in negative territory and is down nearly 80 basis points as of this writing. Sure, Amazon has been beaten down along with many other high-growth tech stocks that trade at high multiples of near-term earnings. Last week, Amazon shareholders officially approved the company's 20-for-1 stock split, which was first announced back in early March.
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Despite being not yet operational, and having no revenue to its name (much less profits), Lithium Americas stock has had a terrific run as investors bid up lithium assets in anticipation of booming demand for the metal, which is used to make the batteries that power electric vehicles. With lithium currently priced at $60,000 a ton, Goldman sees that slipping 10% to $54,000 later this year — a pothole that precedes a bigger fall off a cliff. By next year, the banker believes, lithium prices will average just $16,000, a staggering 73% decline from present-day prices.
Shares of precious metals miner Gold Fields (NYSE: GFI) fell as much as 23% at the open of trading on May 31. Meanwhile, Yamana Gold (NYSE: AUY) rose around 12%. The basics of the acquisition are that Gold Fields will buy Yamana in an all-stock deal.
For the first time in nearly three years, metro Phoenix did not top the nation in home price growth, even though the Valley's large price gains are still affecting affordability in the area. Here's what top economists have to say about how housing prices are trending and why there's a new No. 1 city atop the list.
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Shares of MicroStrategy (NASDAQ: MSTR), a cloud-based analytics company, were flying high today on no company-specific news. Investors were instead likely reacting to the rising price of Bitcoin as the value of the cryptocurrency is on the rise. MicroStrategy holds well over 100,000 Bitcoin tokens, so its shareholders react strongly to the price of the cryptocurrency.
To be sure, the dollar is by far the most popular currency for global reserves, international trade and bank deposits
What to make of the markets right now? Stocks finished the last full week of May with gains. The S&P 500 pulled back from the bear-market territory by gaining 6% for the week and moderating its year-to-date loss to 13%. The NASDAQ remains low, at a 23% year-to-date loss. It’s all a reminder that while markets are falling this year, the true key to understanding them is volatility. It’s natural at times like this to turn to the financial experts – traders who’ve risen to prominence through long-t
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Shares of the Chinese electric vehicle (EV) maker Nio (NYSE: NIO) hit the gas today as investors processed the news that China is implementing a tax cut for new car purchases and that the government will offer a cash subsidy for people who buy a battery-powered car. Additionally, a positive analyst's note about the company could be boosting investor sentiment. China's economy has been hurt by the country's strict "zero-COVID" policy, which has caused many cities and factories to shut down.
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Investors slapping a few dollars down on DraftKings (NASDAQ: DKNG) stock Tuesday didn't make the best pick. Tuesday morning, Citigroup's Jason Bazinet gave his DraftKings price target a 20% haircut. In his new research note on the company, Bazinet wrote that his modification is based on a slight decline in DraftKings' active accounts, and a lower target enterprise value per account.
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