Dollar Near Seven-Month Low Amid Federal Reserve Rate Cut Speculations
The dollar hovered near a seven-month low due to speculations that the U.S. Federal Reserve might cut interest rates next month. This benefited other currencies like the euro and sterling. Federal Reserve Chair Jerome Powell’s upcoming speech is expected to provide clues on future rate cuts.
![Dollar Near Seven-Month Low Amid Federal Reserve Rate Cut Speculations](https://devdiscourse.blob.core.windows.net/aiimagegallery/30_07_2024_04_47_12_9775089.png)
The dollar hovered near a seven-month low on Tuesday, driven by speculations that the U.S. central bank will cut interest rates next month. Traders await comments from Federal Reserve Chair Jerome Powell on Friday, which could provide more clarity on this issue.
The dollar's weakness has lifted other major currencies, with the euro reaching its highest point this year and the pound nearing a one-month peak. The Japanese yen also gained slightly, trading at 146.50 per dollar, close to its two-week high from the previous session.
Investor focus will primarily be on Powell's upcoming speech in Jackson Hole. Market participants expect Powell to address the potential for a rate cut, dissecting his words for indications of either a 25 basis point or 50 basis point reduction in September.
(With inputs from agencies.)
ALSO READ
FTSE 100 Edges Up Amid Pharma Gains and Fed Rate Cut Anticipation
Rising Gas Prices for Europe Loom Without Russia-Ukraine Transit Deal
Global Stocks Soar Amid Nvidia Anticipation, Sterling Nears 2-1/2-Year High
Denmark Nominates Dan Jorgensen for European Commission Post
PhonePe Eyes European Expansion Amid Market Cap Concerns