Trade frictions muddy forex waters

US central bank keeps interest rates unchanged, in line with market expectations

Uncertainties brought by global trade frictions, compounded with the US Federal Reserve's continual rate hikes, are expected to further complicate the market expectations on the renminbi exchange rate, according to analysts.

The US dollar continually strengthened against a basket of major currencies on Wednesday although the US central bank decided to keep interest rates unchanged after a two-day meeting, a move which was consistent with market expectations.