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The dollar near its lowest levels of the year
Markets gear up before central bank meetings
The dollar traded near its lowest point of the year, with markets anticipating a U.S. easing cycle.
The euro hovered near $1.1123, while the yen briefly strengthened, and the pound climbed above $1.32.
Asian stocks rose slightly, driven by optimism over a potential Fed rate cut, while Japanese markets were impacted by a stronger yen.
In currencies
The dollar hovered near its lowest point of the year on Tuesday, as markets anticipated the beginning of a U.S. easing cycle, potentially starting with a larger-than-expected rate cut.
In the Asian session, the euro remained around $1.1123, just shy of the year’s peak at $1.1201.
The yen briefly strengthened below 140 during light holiday trading overnight but eased back to 140.77 as Tokyo markets reopened.
The pound climbed above $1.32 086, the Bank of England is widely expected to keep rates steady at 5% during its meeting on Thursday, though markets have priced in a 36% chance of another cut.
Meanwhile, the Australian and New Zealand dollars gained momentum, reaching $0.6746 and $0.6189, respectively.
In Asia
Asian stocks edged higher also fueled by optimism over an anticipated interest rate cut by the Federal Reserve, though Japanese markets were weighed down by a stronger yen ahead of the Bank of Japan’s meeting.
Regional markets had a mixed start, following a choppy session on Wall Street. Losses in tech stocks pulled the Nasdaq lower, while the Dow Jones Industrial Average hit a record high as expectations for lower interest rates drew investors into economically sensitive sectors.
