(Recasts, new throughout; adds analyst quotes)
By Kate Duguid
NEW YORK, Sept 19 (Reuters) - The U.S. dollar was mixed on
Thursday morning, weaker against the euro, the Swiss franc and the
Japanese yen, but stronger versus the Antipodean currencies after a
slew of central bank decisions came in more hawkish than expected.
The Federal Reserve on Wednesday cut interest rates by 25 basis
points to provide insurance against risks including weak global growth
and resurgent trade tensions, while signaling a higher bar to further
reductions in borrowing costs.
Subsequently, the Swiss National Bank, the Bank of England and the
Bank of Japan all kept their policies on hold. Norges Bank increased
its key policy rate, moving its rates in the opposite direction of the
United States and European Union.
The dollar dipped, 0.22% lower against a basket of currencies ,
despite Fed Chair Jerome Powell's statement that "what we think
we are facing here is a situation which can be addressed, which should
be addressed, with moderate adjustments to the federal funds
rate." Powell noted that the U.S. labor market was strong and
inflation was likely to return to the Fed's 2% annual goal.
Central banks "came off a really bad month of August for risk
and for sentiment," said Brian Daingerfield, macro strategist at
RBS Securities in Stamford, Connecticut.
"But as September dawned, some of the worst U.S.-China trade
escalation has pulled back, the market has been pricing out the
possibility of a near-term no-deal Brexit as we prepared for elections
in the UK. Some of the economic data have brightened a bit," he
The Swiss franc rallied against its major peers on Thursday and
is on track to post its biggest daily jump versus the greenback in a
month. Against the dollar, the euro was 0.23% stronger, last at
Elsewhere, the Japanese yen maintained earlier gains after the
Bank of Japan kept interest rates on hold, last up 0.37% against the
dollar. The BOJ also signaled the chance of expanding stimulus as
early as its next policy meeting in October by issuing a stronger
warning over the risks threatening the economy.
The central banks are generally "kind of holding their breath
and holding their fire in terms of fully acknowledging that further
easing could come down the road but not moving in a proactive way
towards additional easing," said Daingerfield.
Against the Australian and New Zealand dollars the U.S.
dollar was stronger, up 0.47% and 0.21% respectively.
(Reporting by Kate Duguid in New York and Tommy Wilkes and Saikat
Chatterjee in London, Editing by Rosalba O'Brien)
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