Dollars expand weaknesses as mountains anticipate Fed interest rates
The dollar dropped for the second successive session on Wednesday, the day after the reading of US inflation increases the expectations of cutting the federal reserve level next month, and renewed pressure from President Donald Trump for lower rates added to the sale action.
The dollar index, measuring the currency against a basket of colleagues, fell 0.2% to 97.81, the lowest since July 28, extending a 0.5% decline on Tuesday.
US consumer prices increased slightly in July, data showed on Tuesday, in line with estimates and as a pass-through from the large tariff of Trump to the price of goods so far.
Investors with a price of 98% of central bank opportunities will facilitate the tariff next month, according to LSEG data.
On Wednesday, Minister of Finance Scott Besent called for “a series of interest rates,” and said The Fed could start the policy level with a easing of 50 basis points.
The day before, US President Donald Trump, who had repeatedly criticized Fed Jerome Powell’s chairman because it did not reduce the faster tariff, had added pressure on The Fed.
Spokesman for White House Karoline Leavitt said that the President was considering a lawsuit against Powell in connection with the management of renovations at the Washington central bank headquarters.
“I think there is a significant pressure on the Fed from the political side of Washington to get interest rates,” Shaun Osborne, head of the currency strategy expert in Scotiabank, said.
Michael Pfister, FX Analyst at the Commerzbank, said that this political development brought the Gema of Autocratic Countries, where the Head of Statistics Institutions or Central Banks was replaced and important data series that were often stopped or manipulated.
“I did not say that this would always happen here. But the development of the last few days and the last week was not true -actually filled me with optimism about the future, or the US dollar,” Pfister said.
Trump also scored a goal at Goldman Sachs (GS.N), CEO of David Solomon, said the bank was wrong to predict US tariffs would hurt the economy. Trump questioned whether Solomon had to lead the Wall Street institution.
Dollar weaknesses support Euro and Sterling. The single currency last rose 0.3% to $ 1,1705, briefly reaching the highest since July 28. Likewise, the British currency rose 0.5% to $ 1,3572, briefly reaching the highest since July 24.
The British job market is weakening again, although the growth of wages remains strong, according to data on Tuesday, underlines why the Bank of England is very careful in cutting interest rates.
The Australian dollar rose 0.3% to $ 0.6550, while the New Zealand dollar rose 0.5% to $ 0.5982.
Reserve Bank of Australia on Tuesday cut interest rates as expected, and signaling further policy easing may be needed to meet the objectives of inflation and work because the economy loses momentum.
In Cryptocurrency, Ether increases the highest level of almost four years $ 4,734.47.
“The quiet escape of Ethereum is being triggered by real -world adoption and capital confidence,” said Gracie Lin, CEO of Singapore from Crypto Exchange OKX.
“On our platform, ETH has now followed BTC as the most traded asset for the past month.”
Source: Reuters (reporting by Joice Alves and Rae Wee; editing by Kate Mayberry, Giles Elgood and Barbara Lewis)
