2024-01-17T04:45:58+00:00
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/ The dollar index hovered at its highest level in a month against a basket of currencies on Wednesday, as comments by Christopher Waller, a member of the Federal Reserve Board of Governors (the US central bank), weakened expectations of an interest rate cut in March.
Waller said Tuesday that while the United States is “close to” the central bank’s 2 percent inflation target, the bank should not rush to cut its benchmark interest rate until it is clear that low inflation will persist.
Market expectations for a rate cut in March fell to a 62.2 percent chance, compared to 76.9 percent in the previous session.
The dollar index, which measures the performance of the US currency against a basket of major currencies, reached 103.35 points after rising to 103.42 points during the previous session, its highest level since December 13.
Meanwhile, the euro hovered near a one-month low of $1.0875 after its biggest one-day drop in two weeks, following comments from several European Central Bank policymakers this week that kept uncertainty over the timing of an interest rate cut.
Sterling was last trading largely unchanged at $1.2636, after falling sharply on Tuesday following data showing UK wage growth slowed in the three months to November.
The Japanese yen came under some pressure again. It hit its lowest level since early December at 147.45 to the dollar, with the greenback receiving support from rising US bond yields.