Singapore (Reuters)
The dollar fell near its lowest level in seven months against other major currencies today, Tuesday, influenced by investor optimism that the Federal Reserve (the US central bank) may be close to ending the cycle of increasing interest rates, and with the increasing demand for risky assets after the lifting of Covid restrictions in… China.
Markets are increasingly skeptical that the Federal Reserve will have to raise interest rates above 5 percent to control inflation, as strong rate hikes last year are already bearing fruit.
Investors now expect rates to peak below 5 percent by June. The euro was last up 0.07 percent at $1.0739, holding near a seven-month high of $1.07605 hit last session.
The pound sterling fell 0.08 percent to $ 1.21705, after it also recorded a three-week high of $ 1.2209 yesterday, Monday, and after closing up 0.73 percent.
The dollar index, which measures the dollar’s performance against a basket of major currencies, fell 0.03 percent to 103.14, after falling 0.7 percent to touch a seven-month low of 102.93 in the last session.
The Australian dollar rose 0.03% to $0.69155, after jumping to a more than four-month high of $0.6950 in the last session.
The New Zealand dollar rose 0.13% to $0.6378, staying near its highest level in more than three weeks, which it hit yesterday at $0.6411.
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