Dollar Eases on Possible Fed Tightening – 26 May, 2022

The U.S. dollar dipped lower as markets weighed the possibility of the Federal Reserve slowing or pausing its tightening cycle which may weaken the allure of the safehaven currency. Against a basket of six major currencies, the dollar index was down 0.206% to 101.84. The currency began to weaken after minutes from the Fed’s May meeting showed that most participants judged that 50 basis-point hikes would likely be appropriate at the June and July policy meetings to combat inflation. The euro rose 0.37% to $1.0719, while the dollar edged down 0.011% against the Japanese yen to 127.155 yen. The pound was last up 0.1% at $1.2596, while the Australian dollar up 0.08% at $0.7093 and New Zealand dollar down 0.08% at $0.6473.