U.S. Dollar Steadies Amid Federal Reserve Speculations
The U.S. dollar held slight gains over major currencies, stabilizing after remarks from Federal Reserve Chair Jerome Powell suggested a potential rate cut. Speculation on the Fed’s direction is causing shifts in global markets, with euro gains and rising U.S. Treasury yields, affecting the broader financial landscape.
The U.S. dollar managed to hold modest gains against key global currencies on Monday, following Federal Reserve Chair Jerome Powell's comments last week which hinted at a possible rate cut. This development has stirred expectations among traders, affecting currency values globally.
Analysts believe more data is needed to sway Federal Reserve policy decisions. Major financial institutions, like Barclays and Deutsche Bank, anticipate a 25-basis-point reduction by September. Concerns about U.S. economic slowdown and fiscal conditions are also weighing on the dollar, according to experts.
Eurozone bond yields rose, and the U.S. Treasury market saw adjusted rates across the curve, reflecting trader sentiments. Additionally, the Chinese yuan strengthened amidst dollar fluctuations, and cryptocurrencies like ether and bitcoin experienced declines, illustrating the dollar's broader impact.
(With inputs from agencies.)
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