The Fed started its two-day meeting Tuesday amid signs of a weakening job market and mounting pressure from President Donald Trump to lower rates. Fed Chair Jerome Powell’s dovish speech last month at the Jackson Hole symposium has helped to boost expectations for rate cuts.
Bloomberg’s gauge of the dollar approached its lowest level since March 2022 ahead of the Federal Reserve decision where policymakers are expected to resume cutting interest rates to prop up a weakening labour market.
The Bloomberg Dollar Spot Index fell for a third day, dropping 0.1%, as traders await the central bank’s announcement and further guidance on the pace of rate reductions for the remainder of the year. The euro and yen helped lead major peers higher versus the greenback.
