Dollar Weakness Deepens Amid Global Rate Hike Expectations
The US dollar remains under pressure despite expectations of an interest rate hike from the Federal Reserve. This unexpected weakness has been fueled by ongoing tensions in the Middle East, which have raised concerns about inflationary pressures and prompted central banks worldwide to tighten monetary policy.
Against a basket of currencies, the dollar fell 0.07% to 99.09, nearing its recent low of 98.558. This decline is significant, given that interest rate hikes are typically expected to strengthen the dollar by making it more attractive to investors.
The euro saw a minor gain at $1.1618, while the British pound was little changed at $1.3519. The yen rose over 0.2% to 155.88 per dollar, building on gains after Japanese Prime Minister Sanae Takaichi's economic adviser predicted that the Bank of Japan would raise interest rates this month.
In other currencies, the Australian dollar advanced 0.12% to $0.7208, while the New Zealand dollar held steady at $0.5880.