The dollar is heading for its biggest weekly decline against other major currencies since July, influenced by the growing likelihood of a US interest rate cut next year, while the euro and the British Pound received support today as central banks in Europe continued their tendency to monetary tightening.
In a busy week of central bank decisions, the picture became clearer for traders about the possible date of interest rate cuts after Federal Reserve Chairman Jerome Powell said at a meeting on Wednesday that monetary tightening was likely to end and that the discussion of a cut was “under consideration”.
As a result, the US currency fell against other major currencies, as the dollar index recorded 102.01, not far from the four-month low of 101.76 that it touched yesterday.
The two indexes fell nearly 2% and are heading for their biggest weekly decline since July .
The euro hit 1.0985 dollars, which is slightly below the level of 1.1009 dollars touched yesterday and was the highest level in two weeks.
