Forex
Dollar Weakens as Rate Hike Bets Dwindle Amid Middle East Tensions
The US dollar has weakened against major currencies as traders reduce their expectations of near-term interest rate hikes.
Recent data showed a decline in US retail sales and job losses, leading investors to scale back predictions of a rate increase by the Federal Reserve.
According to the CME FedWatch tool, there is now only a 35% chance of a rate hike at the September meeting, down from 52.2% a week ago.
The ongoing conflict between the US and Iran has also added to market uncertainty, with analysts warning that inflation may be above target for most of the past five years, leaving little room for error in a world of constant supply shocks.