Dollar hovers near multi-month lows
Agencies Singapore The US dollar remained near multi-month lows against most major currencies on Tuesday as traders continued to scale back expectations of near-term monetary tight...
The US dollar found itself hovering close to multi-month lows against key currencies on Tuesday, as traders decreased expectations of an imminent rate hike from the Federal Reserve, following indications of a slackening US economy. The euro held steady at $1.1581 in early Asian trading, barely deviating from its two-month high of $1.1614 reached on Monday. Meanwhile, the British pound maintained its strength at $1.3548, slightly below its three-month peak seen in the preceding session.
The Japanese yen endured pressure near the psychologically significant 160-per-dollar mark, trading at 159.46 per US dollar. This downward pressure stemmed from recent endeavors by Japanese and US authorities to bolster the currency. Despite these efforts, the yen's weakness persisted. Conversely, the Australian dollar exhibited modest gains, climbing 0.11 percent to $0.71119, hovering near its strongest level since early June. The New Zealand dollar, meanwhile, settled at $0.5902.
The dollar's decline can be primarily attributed to shifting expectations regarding the Federal Reserve's interest rate trajectory. Recent US economic indicators, such as weaker employment data, subdued inflation, and disappointing retail sales, have prompted traders to reduce their bets on another rate increase in the near future.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
