Dollar hovers near three-month lows on Fed rates prospects

2022-11-24 13:01:16 GMT (Economies.com)
Dollar hovers near three-month lows on Fed rates prospects

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%.

 
 
 
  Symbol Last Change Chg.%
1.0514
-0.0076
0.7188%
1.2196
-0.0109
0.8860%
22.430
-0.727
3.139%
76.220
-5.255
6.450%
81.38
-1.36
1.64%
1778.145
-17.415
0.970%
 
 
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