The dollar index, which measures the greenback’s value against a basket of six currencies, was down 0.0069 percent at 100.95 points, reversing earlier gains. It had been at 100.21 in the previous session, its lowest level in more than a year.
He dollar in the world fell slightly on Thursday in a volatile market, in which the agents faced the interest rate cuts of 50 basis points and the Federal Reserve’s shift to an expansionary monetary policy, which further weakens the US currency.
Expectations had already been tilted toward an expansionary outcome in the days leading up to the Fed’s decision on Wednesday, with money markets pricing in around a 65% chance of a 50 basis point (bp) cut.
The dollar index, which measures the greenback’s value against a basket of six currencies, was down 0.0069% at 100.95 points. after reversing earlier gains. In the previous session it had reached 100.21, its lowest level in more than a year.
The euro was up at $1.111950, but remained below a three-week high. which it reached in the previous session. Against the yen, the dollar rose 0.45% to 142.895.
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Dollar and expectations of new rate cuts
Fed policymakers projected that The benchmark interest rate would fall by another half percentage point at the end of this year, a full percentage point next year and half a percentage point in 2026, although they said the outlook for that long was uncertain.
Money markets are pricing in further rate cuts of 72 basis points in 2024 and 191 basis points in September 2025.
The pound hit its highest level since March 2022 against the dollar after the Bank of England’s Monetary Policy Committee (MPC) voted 8 to 1 to keep rates on hold.
Sterling was up 0.30% at $1.32540, having touched a high of $1.3314.
Source: Ambito
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