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US dollar weakens as Federal Reserve expected to cut interest rates

The US dollar slid on Monday, due to expectations that the Federal Reserve is done hiking interest rates and might even start cutting them by the first half of next year. The dollar index , which measures the currency against six major peers, slipped 0.2% to 103.20 and was headed for a monthly loss of more than 3%, its worst performance since November 2022.

US rate futures on Monday showed a roughly 23% chance that the Fed may begin easing monetary policy as early as March, according to the CME Group's FedWatch Tool. That probability rises to about 50% in May.

Source: reuters.com

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