Dollar falls to 2-month low, sterling hits 15-month high

July 11, 2023 / 7:14 PM
Sharjah 24 – BNA: The dollar weakened to a two-month low on Tuesday after Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle, while the pound hit a 15-month high after pay growth exceeded expectations.
Several Fed officials said that the central bank would likely need to raise interest rates further to bring down inflation but the end to its current monetary policy tightening cycle was getting close, Reuters reported.

The comments knocked the greenback to a two-month low of 101.67 against a basket of currencies, as traders pared back their expectations about how much further U.S. rates may have to rise.

US interest rate expectations have been a key driver of the dollar since the Fed began its tightening cycle last year.

Markets are now focusing their attention on US consumer prices data due out on Wednesday, which will provide more clarity on the progress the Fed has made in its fight against stubbornly high inflation.
July 11, 2023 / 7:14 PM

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