US Dollar Index Hits 14-Month Low Amid Rate Cut Speculation
The US Dollar Index falls 0.3%, nearing a 14-month low as weak economic data heightens expectations of further Fed rate cuts. Investors eye upcoming jobs report for clarity.
Published on 1 Oct 2024
, 1 minute read
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 100.4 on Friday, continuing to hover near a 14-month low as soft US economic data reinforced expectations of further Federal Reserve rate cuts.
The core PCE price index, the Fed’s preferred inflation gauge, rose just 0.1% in August, less than the 0.2% forecast, while the annual increase of 2.7% matched estimates. Personal income and spending also came in weaker than expected last month.
Meanwhile, the latest weekly jobless claims report pointed to a resilient labour market. Investors now look ahead to the September jobs report this week for further guidance.
Markets remain split on whether the Fed will cut rates by 50 basis points in November or opt for a smaller 25 bps reduction.
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