Dollar Falls on US Rate Cut Expectations

Market


The dollar traded near its lowest levels of the year on Tuesday, on the eve of the expected start to a US easing cycle that markets are betting may begin with an outsized rate cut.

The euro hovered around $1.1123 in the Asia session, not far from the year’s high of $1.1201.

The yen made a jaunt to the stronger side of 140 during holiday thinned trade on Monday, and had eased back to 140.77 as dealers returned to their desks in Tokyo.

Sterling – the best performing G10 currency this year with a 3.9% rise on the dollar – has also led the charge against the dollar thanks to signs of resilience in Britain’s economy and stickiness in inflation.

It broke above $1.32 on Monday and bought $1.3203 in the Asia session.

The Australian and New Zealand dollars also rallied through Monday and bought $0.6746 and $0.6189, respectively, on Tuesday.

Chinese markets are closed for the Mid-Autumn Festival break until Wednesday, though the yuan was firm at 7.0947 in offshore trade as it settles into a new range.

The US dol
lar index held at 100.7, not far from its 2024 low made last month at 100.51. (QNA)

Source: Qatar News Agency