Dollar at 7-month low vs euro on slower Fed rate hike expectations
Agencies | Albany
The Daily Tribune – www.newsofbahrain.com
The U.S. dollar on Monday slid to a seven-month low against the euro as traders bet recent economic data would prompt the Federal Reserve to slow the pace of interest rate hikes, while riskier currencies benefited from China reopening its borders.
The euro was up 0.96% at $1.0747 at 2:50 p.m. EST (1950 GMT), its highest level versus the greenback since June 9, adding to Friday's 1.17% increase, Reuters reported.
The Australian dollar rose by 0.8% to $0.69305, hitting its highest level against the U.S. currency since Aug. 30, while the kiwi was last up 0.45% at $0.6378.
The dollar index was at a 7-month low, last down 0.81% at 103.033.
The index, which measures the greenback against six major currencies, tumbled 1.15% on Friday as investors shifted into riskier assets.
The moves continued the trend lower for the dollar, which in the final three months of 2022 posted its biggest quarterly loss in 12 years.
That was driven mainly by investors' belief that the Fed will not raise rates beyond 5%, from its current range of 4.25%-4.50%, as inflation and growth cool.
Related Posts