Dollar Dips On Possible Rate Hike – July 25, 2022

Investors weighing the impact of a rate hike by the U.S. Federal Reserve in an economy that is possibly on the verge of a recession caused the dollar to dip against a basket of major currencies. During its policy meetings on Wednesday, expectations are that the central bank will raise interest rates by 75 basis points, which could end pandemic-era support for the economy. The dollar index dipped 0.244% to 106.420, while the euro was up 0.14% to $1.0224. The greenback saw its biggest weekly decline in two months last week, as a rally in equities helped dent the appeal of the safe-haven dollar and a 50 basis point rate hike by the European Central Bank helped buoy the euro to a two-week high. The Japanese yen weakened 0.44% versus the greenback at 136.65 per dollar, while Sterling was last trading at $1.2047, up 0.37% for the day.