Dollar Falls on US Rate Cut Expectations

The dollar traded near its lowest levels of the year today, on the eve of the expected start to a US easing cycle that markets are betting may begin with an outsized rate cut. The euro hovered around $1.1123 in the Asia session, not far from the year's high of $1.1201. The yen made a jaunt to the stronger side of 140 during holiday thinned trade yesterday (Monday), and had eased back to 140.77 as dealers returned to their desks in Tokyo. Sterling - the best performing G10 currency this year (2024) with a 3.9% rise on the dollar - has also led the charge against the dollar, thanks to signs of resilience in Britain's economy and stickiness in inflation. It broke above $1.32 yesterday (Monday) and bought $1.3203 in the Asia session. The Australian and New Zealand dollars also rallied through yesterday (Monday) and bought $0.6746 and $0.6189, respectively, today. Chinese markets are closed for the Mid-Autumn Festival break until Wednesday, though the yuan was firm at 7.0947 in offshore trade as it settles in to a new range. The US dollar index held at 100.7, not far from its 2024 low made last month at 100.51. Source: Oman News Agency