Dollar hovers near three-month lows on Fed rates prospects
2022-11-24 12:27PM UTC

Dollar fell in European trade against a basket of major rivals, sharpening the decline for the third straight session and almost hitting three-month lows amid renewed selloff pressures on the currency following weak US data and Fed's minutes. 


It's now clear that Fed members are preparing for a slower pace of rate hikes, paving the way for a 0.5% rate hike in December.


The Index


The dollar index fell 0.4% to 105.63 with a session-high at 106.07, while closing 1% lower yesterday, the second loss in a row, with the index approaching recent three-month lows at 105.34. 


Weak Data


Recent US data showed industrial activities slowed down sharply for the first time in 2-1/5 years as increased interest rates hampered new orders.



The data overall showed a decline in services and industrial activities in November for the fifth month in a row, a sign of recession.


The Fed


Fed's minutes yesterday showed US policymakers are content about the slowdown in inflation, and are moving toward smaller rate hikes.


Fed Rates


Chances of a 0.5% rate hike rose from 75% to 85%, while chances of 75% rate hike fell from 25% to 15%.

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