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Dollar Holds Steady Amid Rate Cutโ Expectations
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New Yorkโ – โฃthe U.S. dollar experienced a period of stabilization โขMonday, following โคa significant โขdecline last week triggered by comments fromโ Federal Reserve โคChairman Jeromeโ Powell suggesting potentialโข interestโข rate reductions as โคearly as next month. This shift inโข sentiment has prompted a reassessment of currency valuations across majorโฃ markets.
Currency Movements
The euro weakened to $1.1699, a slight decrease โfrom its four-week high of $1.174225 reached onโ friday. Both the British pound โคand the Swiss franc alsoโค saw a 0.1โ percent decline in value. These movements reflect a broader trend ofโค dollar recovery as investors digest the implications of aโ potentially more dovish Federal Reserve policy.
Mark Chandler, chief market strategist at Bangkarn โฃGlobal Forex, noted the current market pause. The dollar isโ holding today โฃin โrelatively โคnarrow rangesโฆ I think it will take more dataโฆ to really โขinfluenceโฃ the โขFederal Reserve’s expectations,
he stated.โ This highlights the data-dependent nature of future monetary policy decisions.
Rate Cut Predictions
Several prominent financial institutions, including Barclays, BNP Paribas, โคand Deutsche Bank, now โขanticipate a 25 basis point โinterest โขrate cut โขin September. Thisโฃ expectation โฃstems from Powell’s remarks on Friday,where he acknowledged elevated risks in theโฃ Americanโค job market while together cautioning that inflation remains a concern. The