Dollar Slips to 2-Week Low

2025-12-01 03:24 By Judith Sib-at 1 min. read

The dollar index inched down to 99.3 on Monday, its lowest level in two weeks, as investors positioned themselves for a crucial month that could see the Federal Reserve deliver its final rate cut of the year.

Weak economic data and dovish comments from several Fed officials have strengthened expectations of a rate reduction next week, with the implied probability at 87%.

The dollar logged its worst week in four months last week, following a sharp shift in expectations for Fed easing and reports that White House economic adviser Kevin Hassett has emerged as the leading candidate to succeed Jerome Powell as Fed chair, a choice seen as aligned with President Donald Trump’s preference for lower interest rates.

On Sunday, Trump said he has decided on his pick for the next Fed chair and will announce it soon.

Investors are looking ahead to fresh economic data this week, particularly ADP private payrolls and PCE figures, for more clues on the Fed's rate path.



News Stream
Dollar Edges Up on Friday but Set for Weekly Drop
The dollar index rose to 99.8 on Friday, after falling 0.8% in the previous session, as the war with Iran continued and prospects for a swift resolution remained slim. Oil prices were volatile but held near 2022 highs, heightening concerns about their impact on inflation at a time when central banks are already adopting a more cautious, hawkish stance. The Federal Reserve left the federal funds rate unchanged on Wednesday. Updated projections still point to one rate cut this year, but policymakers highlighted uncertainty surrounding the economic impact of the conflict and flagged elevated upside risks to inflation. The greenback strengthened broadly, with the most notable gains against the Japanese yen. Despite Friday’s uptick, the dollar is down nearly 1% for the week.
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The dollar index hovered near 99 on Friday after losing more than 1% in the previous session, as hawkish signals from other major central banks strengthened their currencies at the dollar’s expense. The European Central Bank, Bank of Japan, and Bank of England all kept policy rates unchanged on Thursday but indicated a bias toward tighter monetary policy amid inflation pressures from rising oil prices. The BOJ is expected to resume policy normalization soon, while markets now anticipate rate hikes from both the ECB and BOE this year. Elsewhere, the Reserve Bank of Australia raised its cash rate for the second consecutive meeting on Tuesday, and the Reserve Bank of New Zealand may tighten policy sooner than previously expected. The Federal Reserve also held rates steady on Wednesday, with Chair Jerome Powell stressing that officials need to see progress in reducing inflation before resuming rate cuts. The dollar index is on track to lose about 1.2% this week.
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