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Forex

Dollar Rebounds Amid Weaker Rate Hike Expectations

Guavy AI Editorial Team
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USD
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The US dollar made a recovery on Friday after experiencing sharp losses following the Federal Reserve's latest policy meeting.

The dollar gained approximately 0.3% during trading, rebounding from its nearly 2.4% decline on Thursday, which was its largest daily drop since January 2023.

Fed Chair Kevin Warsh reaffirmed the central bank's commitment to lowering inflation, leaving markets uncertain about future monetary policy directions.

The probability of an interest rate increase at the Federal Reserve's September meeting has decreased from over 80% a week earlier to 63%, according to CME Group's FedWatch Tool.

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