The Fed's October policy meeting ended with rates left unchanged, the dollar index drifted lower, and the yuan strengthened against the dollar in both the onshore and offshore markets.
On October 29, the offshore yuan broke through the 6.66 mark against the dollar, reaching an intraday high of 6.6583 at the time of writing, the strongest level since June 8, 2022.
In the onshore market, the spot yuan rose to an intraday high of 6.6615 against the dollar on October 29, also the strongest since June 8, 2022.
As for the central parity rate, the yuan was set at 6.7147 per dollar, an appreciation of 18 basis points.
In the early hours of October 29 Beijing time, the Fed announced it would keep the target range for the federal funds rate unchanged at 3.75% to 4.00%, in line with market expectations. The decision drew 10 votes in favor and 2 against. Fed Chair Kevin Warsh said at a press conference that the Fed should not pre-judge policy decisions for future meetings during normal times, and that economic information over the coming period will help the committee assess the appropriate stance of monetary policy.
Comments