US Edition
Dollar Weakest Since 2021 Against Euro as Fed Rate Cuts Bets Rise
- On Friday, the U.S. dollar fell to its lowest level against the euro in three and a half years, with the euro climbing to $1.1754, marking its highest value since September 2021 amid widespread selling pressure.
- This decline followed weaker U.S. economic data, including an unexpected drop in consumer spending in May and concerns over inflation remaining moderate.
- Market participants speculated on the Federal Reserve easing policy sooner, with traders pricing in 66 basis points of rate cuts by year-end, up from 46 basis points last week.
- Chicago Fed President Austan Goolsbee noted that naming Jerome Powell's replacement would not influence monetary policy until confirmed, while strategist Eric Theoret said the week has focused on potential easing and more rate cuts.
- The dollar's weakness implies a shift in investor expectations toward a dovish Fed stance and reflects broader concerns about U.S. economic growth and currency stability going forward.
43 Articles
43 Articles
Dollar droops as optimism over US trade deals boost Fed easing bets
By Kevin Buckland TOKYO (Reuters) -The dollar wallowed near its lowest in nearly four years against the euro on Monday as market optimism over U.S. trade deals bolstered bets for earlier Federal Reserve interest rate cuts. The greenback also languished near a four-year low versus sterling and a more than decade trough to the Swiss franc after Washington and China moved closer to a tariff agreement, even as U.S. President Donald Trump injected so…
Several factors have been combined in 2025 to dilute the value of the US dollar against other currencies. The dollar index (DXY), which is calculated weighted with the exchange rates of the euro, the Japanese yen, the Canadian dollar, the pound sterling, the Swedish krona and the Swiss franc, has fallen 11.6% so far this year, according to NYSE data. Analysts point out that the aggressive reciprocal tariffs plan against the world that Trump pres…
Channel News Asia
Dollar weakest since 2021 against euro as Fed rate cuts bets rise
NEW YORK :The dollar hit a fresh three-and-a-half-year low against the euro on Friday as traders bet that the Federal Reserve will cut rates more times and possibly sooner than previously expected as some U.S. data points to a weakening economy.A report on Friday showed that U.S. consumer spending unexpectedl
Coverage Details
Bias Distribution
- 55% of the sources are Center
To view factuality data please Upgrade to Premium
