The US Dollar Hits Near-One-Year Low as Fed Rate Cut Expectations Continue to Influence
Publication Time:2024-08-24 02:41:08
Following remarks from Federal Reserve Chairman Powell that all but signaled the end of the Fed's inflation fight, the US dollar fell to near its lowest level since the last rate hike on Friday. Data showed that the dollar’s exchange rate against a basket of currencies hit a 52-week low, extending the recent decline driven by expectations of rate cuts in the coming months. This move not only reflects market reaction to a shift in Federal Reserve policy but also hints at a potential change in the direction of capital flows in global markets. It is worth noting, however, that the US dollar’s weakening typically benefits American businesses, aiding them in selling goods and services abroad, which could promote export growth and economic expansion.
rate cut
Federal Reserve
global markets
US Dollar
Exchange Rates