Dollar Remains Strong Amid Rate Cut Speculations and Global Uncertainties
The dollar steadied near seven-week highs as expectations for U.S. rate cuts were tempered by strong jobs data and Middle East conflicts. Investors eye Fed's September meeting minutes and CPI report for clues. Strong dollar pressures other currencies; geopolitical risks drive safe-haven gains in yen.
The dollar held firm near seven-week peaks against key global currencies on Tuesday, buoyed by speculations over U.S. rate cuts and geopolitical tensions in the Middle East. The muted U.S. economic data this week shifts focus to the minutes from the Federal Reserve's last meeting and upcoming CPI report.
In currency movements, the euro nudged up 0.05% to $1.0979, while the pound advanced 0.17% to $1.3104. A robust U.S. jobs report has curbed broader expectations for aggressive rate cuts from the Federal Reserve, reinforcing Chair Jerome Powell's stance on gradual monetary easing.
Market analysis points to a strong likelihood of a modest 25-basis-point reduction in November, down from prior forecasts. Meanwhile, geopolitical unease bolstered safe-haven currencies like the yen, and the dollar index slipped slightly to 102.45 amidst these market dynamics.
(With inputs from agencies.)
ALSO READ
IRB Infrastructure Developers Eyes USD 200 Million Foreign Investment
India's Renewable Energy Ambition: USD 200 Billion Investment Needed by 2030
EU Support Amplified: Ursula von der Leyen's Crucial Moldova Visit
Pakistan and Saudi Arabia Forge USD 2 Billion Investment Pact
PM Modi announces celebrating 2025 as ASEAN-India Year of Tourism, allocates USD 5 mn for joint initiatives.