Dollar Extends Fall on Dovish Powell Remarks

2025-10-15 01:51 By Jam Kaimo Samonte 1 min. read

The dollar index slipped below 99 on Wednesday, falling for the second straight session after Federal Reserve Chair Jerome Powell’s remarks highlighting a weakening labor market reinforced expectations for further interest rate cuts.

The ongoing federal government shutdown which has prevented the release of crucial economic data also clouded the economic outlook, pressuring the currency further.

Currently, markets are nearly fully priced in for another quarter-point rate cut this month, with an additional reduction seen in December, followed by three more next year.

The dollar also came under pressure from escalating US-China trade tensions after President Donald Trump threatened China with a cooking oil embargo in retaliation for Beijing’s soybean boycott.

Meanwhile, the euro advanced after France proposed suspending major pension reforms, while the yen strengthened as traders unwound the “Takaichi trade.”



News Stream
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