The US dollar hovered near a seven-month low on Tuesday, driven by expectations that the Federal Reserve will begin cutting interest rates next month. Traders are closely watching upcoming comments from Federal Reserve Chair Jerome Powell, scheduled for Friday.
The dollar’s decline boosted the euro to its highest level this year, while the British pound approached a one-month peak, according to Reuters.
The dollar index was at 101.95 after hitting its lowest point since January 2 at 101.82. The index has dropped more than 2% in August and is on track for a second consecutive month of losses.
Expectations of a US rate cut also supported the Australian and New Zealand dollars, both nearing their one-month highs. The Australian dollar was last trading at $0.6719, while the New Zealand dollar stood at $0.61205.
