Dollar strengthens against euro and pound

On Thursday, the dollar strengthened against the euro and pound after a Federal Reserve policy maker indicated no rush to cut rates, while traders remained cautious regarding the yen amid fears of Japanese intervention.

The euro declined by 0.33% to $1.0792, marking its lowest level in five weeks, while the pound fell by 0.25% to $1.2609. As a result, the dollar index rose by 0.16% to 104.6, reaching its highest level since mid-February.

Fed Governor Christopher Waller’s remarks during late U.S. trading hours on Wednesday suggested a reluctance to cut short-term interest rates, particularly in light of recent disappointing inflation data. Consequently, market expectations for the first rate cut at the Fed’s June meeting have slightly decreased, with current pricing indicating a 60% chance, down from 67% the previous week, according to the CME FedWatch tool.

Source: Reuters