Rate Cut Speculations Boosts Dollar – 9 July, 2019

Speculations of a deeper U.S. interest rate cut pushed the dollar to a three week high against a basket of major currencies. A 25 percent rate cut is highly expected due to ongoing worries over the U.S.- China trade war and weak inflation. Against six major currencies, the dollar was last standing at its highest since June 19 at 97.588. Against the yen, the dollar rose to 108.975 yen, and was little changed against the euro at $1.1204 having hit a three week low of $1.1194 earlier in the session. Sterling slipped to a six month low of $1.2439 before settling at $1.2455. Brexit worries and a stronger dollar could hurt the currency further if Britain leaves the European Union without a deal.