Dollar hits eight-month low ahead of central bank meetings
The US dollar is holding steady near an eight-month low as concerns over a potential recession and corporate earnings weigh on investor sentiment.
The US dollar index, which measures the currency against a basket of other currencies, edged 0.1% higher to 101.65, after falling to 101.52 earlier in the session, close to last week’s eight-month low of 101.51.
The thin trading conditions are due to market closures for the Lunar New Year and Australian holidays. Downbeat earnings and guidance from US companies and a string of tech sector layoffs have deepened fears of a sharp economic downturn in the United States, leading investors to pare back expectations on how much longer the Federal Reserve will need to aggressively raise interest rates.
The Fed’s policy-setting committee will begin a two-day meeting next week, and markets have priced in a 25-basis-point interest rate hike, a step down from the central bank’s 50 basis points and 75 basis points increases seen last year.
