U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022.
Markets have priced out any additional Fed rate hikes, as recent data has shown a slowing of the economy and inflation pressures - but not enough to increase fears a sharp recession is looming.
"The market is convinced, both credit, equities and currencies that the Fed has finished raising rates, but the Fed is not willing to say so.
"So you're getting a gradual weakening in the dollar, simply because the Fed is doing its best to prop up rates, not necessarily the dollar, but to prop up rates."
Against the yen the dollar was last traded at 148.36 yen , down 0.84%.
Persons:
Dado Ruvic, CME's, we've, Joseph Trevisani, Thomas Barkin, Moody's, Sterling, Chuck Mikolajczak, Jonathan Oatis
Organizations:
REUTERS, U.S . Federal Reserve, Conference, Fed, Richmond Federal, Central Bank, Thomson
Locations:
U.S