Forex
Dollar Weakens Amid Expectations of Interest Rate Hike Pause
The US dollar continued its downward trend on Monday as investors reassessed the Federal Reserve's monetary policy path and global risk sentiment improved.
The greenback weakened against a basket of major currencies, reflecting a shift in market positioning after recent economic data and central bank commentary.
The dollar's decline is largely driven by expectations that the Federal Reserve may pause its interest rate hiking cycle sooner than previously anticipated.
Recent inflation figures have shown signs of cooling, while labor market data has been mixed, leading traders to adjust their rate hike bets. As a result, the yield advantage that had supported the dollar is narrowing, making other currencies relatively more attractive.