0 Leon Mathias Posted June 5, 2019 Author Share Posted June 5, 2019 Quote Link to comment Share on other sites More sharing options...
0 Ignatius Bose Posted June 5, 2019 Share Posted June 5, 2019 The dollar index has witnessed moderate selling in the past few trading sessions, with the pace gathering momentum in the aftermath of central bank policymakers hinting at the possibility of an interest rate cut amid risks to global growth following the escalation in trade tensions between the United States and China. Earlier this week, the President of the Federal Reserve Bank of St. Louis, James Bullard hinted that the Fed could cut interest rates sooner than expected and the recent inversion in the Treasury yield curve is an indication that interest rates in the country are “inappropriately high.” Following up on the Bullard's statement on Tuesday, Federal Reserve Chairman Jerome Powell dropped his standard “patient” reference while approaching any rate decision while instead saying that policymakers will respond to the situation appropriately. The US dollar index (DXY) has dropped more than a per cent in the last three trading sessions and the declines extended to three-week lows of 96.963 at 7.30 AM GMT on Wednesday. Analysts expect to see further weakness in the dollar, especially if the Fed does ease since it would be a clear indication of a slowdown in global economic growth. Quote Link to comment Share on other sites More sharing options...
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