Dollar Near 3-Week Low
The dollar index weakened to 101.5 on Tuesday, its lowest level in about three weeks, amid renewed concerns over AI, falling oil prices on hopes for a diplomatic resolution to the war in Iran, and weaker-than-expected housing data. Housing starts fell 5.2% in September, while pending home sales dropped to a record low, highlighting the continued impact of elevated mortgage rates on housing demand. Meanwhile, the Fed is widely expected to leave interest rates unchanged at its meeting next week, although markets anticipate a 25bps rate hike in December. Elsewhere, the euro rebounded as unrest in France eased overnight, while the yen appreciated, snapping a two-day losing streak after an auction of longer-dated Japanese government bonds attracted record demand.
The dollar index weakened to 101.5 on Tuesday, its lowest level in about three weeks, amid renewed concerns over AI, falling oil prices on hopes for a diplomatic resolution to the war in Iran, and weaker-than-expected housing data. Housing starts fell 5.2% in September, while pending home sales dropped to a record low, highlighting the continued impact of elevated mortgage rates on housing demand. Meanwhile, the Fed is widely expected to leave interest rates unchanged at its meeting next week, although markets anticipate a 25bps rate hike in December.
Elsewhere, the euro rebounded as unrest in France eased overnight, while the yen appreciated, snapping a two-day losing streak after an auction of longer-dated Japanese government bonds attracted record demand.