Dollar Slips Ahead Of Fed Meeting, Rate Cut In Focus

2024-09-13 03:12:54

(MENAFN- Investor Ideas) The U.S. dollar continued to depreciate on Friday as markets focused on the federal Reserve meeting. While markets expect an interest rate cut, uncertainty lingers over whether it will be 25 or 50 basis points, keeping markets cautious and weighing on the dollar. Stronger expectations of a larger cut have contributed to the greenback's recent decline.

Treasury yields also dropped, with the 10-year U.S. Treasury yield falling below 3.7%, reflecting uncertainty over the potential size of the rate cuts, further pressuring the dollar. Yields could remain under pressure if expectations of a larger rate cut increase.

Attention now shifts to the Michigan consumer sentiment report for September. A stronger-than-expected report could support the US currency and alleviate some concerns about the U.S. economy.

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