The U.S. dollar is weakening ahead of Fed rate cut. Here’s what may happen next.
Currencies
The U.S. dollar is weakening ahead of Fed rate cut. This will determine what happens next.
The need for a larger cut from the Fed would point ‘toward growth concerns and economic trouble ahead,’ says analyst Joe Tuckey
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The U.S. dollar has been sliding in the run-up to a widely expected interest-rate cut from the Federal Reserve on Wednesday and, depending on the size of the Fed’s move, it could end up weakening further — or it could be a buying opportunity.
The dollar, as reflected by the ICE U.S. Dollar Index DXY , was trading near its lowest levels of the year on Monday, at around 100.73 — down from as high as 106.26 in April. When measured against the yen, the greenback depreciated to a more than one-year low on Monday.
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