US Dollar Hits 14-Month Low as Fed Slashes Rates

Here’s this week’s overview of the US Dollar:

•  In the past week, the US Dollar Index weakened by 0.3% against a trade weighted basket of its peers.

• The dollar index fell to 100.7 on Friday, hovering near a 14-month low and facing pressure from a rally in risk assets as the Federal Reserve's jumbo rate cut raised the likelihood of a soft landing for the US economy.

• On Wednesday, the Fed delivered an outsized 50 basis point rate cut for its first reduction in four years.

• The central bank indicated confidence that inflation is moving sustainably toward 2% and moved to forestall a slowdown in the labour market.

• Meanwhile, Fed Chair Powell said the central bank is not in a rush to ease policy and would take decisions around monetary policy meeting by meeting. The dollar also weakened on concerns that other major central banks could ease policy less aggressively than the Fed.