The US Federal Reserve raised interest rates by 0.25 percentage points on Wednesday, bringing the target range to 3.75-4.00%, according to FX Street. This move marked a unanimous 12-0 vote and pushed US rates above the UK's 3.75% for the first time this year.
Following the Fed's hike, gold prices fell below $4,265 during the early Asian session on Thursday as sellers increased their positions, FX Street reported. The rate increase also influenced currency markets, with the Euro continuing its decline after the European Central Bank raised its deposit rate to 2.50% on September 10, a move matched by the Fed on Wednesday.
For Japanese investors, these developments highlight the ongoing shifts in global interest rates that could impact FX and equity markets, especially given Japan's persistently low interest rates and the Bank of Japan's unique policy stance.