Traders Eye Fed Pivot as Dollar Drops to Weakest Since August

The Bloomberg Dollar Spot Index fell to its lowest since August, dropping by 0.5%, following signals from the Fed about a faster pace of rate cuts than previously anticipated. The US central bank has maintained steady rates, with Chair Jerome Powell indicating potential hikes if inflation rises. However, the Fed is largely seen as ending its tightening cycle, shifting focus to when rate cuts should begin as inflation approaches their 2% target.