Dollar Index Falls on Tuesday
The dollar index weakened to 101.8 on Tuesday, pressured by an easing in concerns over high energy prices and the need for further monetary tightening. Oil prices fell to a one-month low amid signs that Middle East crude exports are recovering, helping to ease inflation concerns and reducing expectations for immediate further increases in the Fed funds rate. The Federal Reserve is widely expected to leave borrowing costs unchanged this month, while markets are pricing in a 25bps rate hike in December. The greenback weakened broadly, with the largest declines recorded against the euro. The common currency fell as much as 0.8% on Monday amid concerns over elevated debt and political deadlock in France, while the prospect of an upcoming snap election in Spain added to the headwinds.
8 on Tuesday, pressured by an easing in concerns over high energy prices and the need for further monetary tightening. Oil prices fell to a one-month low amid signs that Middle East crude exports are recovering, helping to ease inflation concerns and reducing expectations for immediate further increases in the Fed funds rate. The Federal Reserve is widely expected to leave borrowing costs unchanged this month, while markets are pricing in a 25bps rate hike in December. The greenback weakened broadly, with the largest declines recorded against the euro.
8% on Monday amid concerns over elevated debt and political deadlock in France, while the prospect of an upcoming snap election in Spain added to the headwinds.