Dollar Falls to Six-Week Low
The US Dollar Index continued its decline to around 100.3 during Thursday's trading (July 30), marking a six-week low. The dollar had previously fallen 0.6% after the Federal Reserve maintained its benchmark interest rate.
The Fed held rates steady despite three FOMC members favoring a 25-basis-point hike. Fed official Kevin Warsh reaffirmed the commitment to controlling inflation but did not directly push for an interest rate increase.
Warsh also did not provide clear guidance regarding future policy. This stance led the market to scale back expectations for a near-term rate hike, suggesting the Fed prefers to await further economic data.
The probability of a rate hike in September dropped to approximately 55%, down from nearly 80% prior to the Fed's decision. Consequently, the dollar's weakness could support gold and major currencies, although the risk of a rate hike may still limit market movements.
Source: Newsmaker.id
