Dollar Holds Steady Amid Reassessed Monetary Tightening Expectations

The US dollar held steady against major currencies on August 18, as traders reassessed expectations of near-term monetary tightening.

Market participants walked back their predictions for a potential hike in interest rates, causing the dollar to hover near multi-month lows against most majors.

The euro reached $1.1581 in early Asian hours, just shy of its two-month high of $1.1614 hit on Monday.

Meanwhile, sterling was trading at $1.3548, slightly below the three-month peak it had touched in the previous session.