Steady Dollar Holds Ground Amid Inflation and Rate Cut Speculations
The U.S. dollar remains steady as markets await a key consumer inflation report that may influence Federal Reserve interest rate decisions. Meanwhile, the Australian dollar faces a potential rate cut by the Reserve Bank of Australia. Global economic conditions are watched closely as inflation data and international trade negotiations develop.
The U.S. dollar maintained its stability on Tuesday as investors awaited a crucial consumer inflation report. The report is seen as a key factor in shaping expectations for potential Federal Reserve interest rate cuts. Meanwhile, the Australian dollar remained unchanged ahead of a policy decision by the Reserve Bank of Australia.
The U.S. dollar index, which compares the currency to six others including the euro and yen, remained steady at 98.497, following a 0.5% increase over two previous sessions. Earlier, the dollar dipped due to dovish signals from U.S. President Donald Trump's choice for the Fed governor and potential chairman candidates, leading traders to anticipate rate cuts.
Amid cooling inflation and potential impacts of Trump's tariffs, market bets for a rate cut have risen, with about 89% predicting a quarter-point reduction by September 17. Additionally, negotiations between the U.S. and China continue, impacting trade policies and economic outlooks.
(With inputs from agencies.)
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