Dollar on Shaky Ground as Fed Rate Cut Bets Strengthen

4 December 2023

The dollar started the week weak after cautious remarks from Federal Reserve Chair Jerome Powell, with markets anticipating a potential end to the rate-hike cycle. Powell indicated U.S. policy was slowing the economy, leading to a 60% chance of a rate cut by March. Meanwhile, Bitcoin surged to $40,000, its highest in over a year. The U.S. dollar index hovered around 103.28, while the Australian and New Zealand dollars strengthened. Upcoming speeches by European Central Bank officials and economic data could further impact currency markets.

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