Period of weakness continues for the US Dollar

Daily Currency Update

The US dollar is experiencing a widespread decline, reaching a level not seen in over three months against its major counterparts. Federal Reserve Governor Christopher Waller, a prominent advocate for tighter monetary policies and a significant figure within the central bank, hinted at the possibility of a future interest rate reduction on Tuesday. This announcement fuelled market speculation that interest rates in the United States may have reached their highest point.

US rate futures indicated a 33% likelihood of a rate reduction in March, which subsequently increased to around a 65% probability in May. These probabilities were at 21% and approximately 50%, respectively, during the late hours of Monday.