U.S. Dollar Holds Near One-Month Low as Fed Rate Bets Ease
The U.S. dollar traded near a one-month low as investors grew more confident that the Federal Reserve will keep interest rates unchanged at its July meeting following softer-than-expected inflation data.
Recent economic reports showed resilient consumer spending and a stable labor market, while easing inflation reduced expectations of a near-term rate hike. However, rising oil prices linked to Middle East tensions helped limit further losses in the dollar by supporting demand for safe-haven assets.
Currency markets also saw the euro weaken on energy concerns, while the British pound remained close to a two-month high. Investors are now focused on upcoming central bank meetings and economic data for clues on the future path of interest rates.