London, July 11 (BNA): The dollar fell to a two-month low on Tuesday after Federal Reserve officials signaled the central bank was nearing the end of its tightening cycle, while the pound hit a 15-month high after outpacing wage growth. expectations.
Several Fed officials have said that the central bank will likely need to raise interest rates further to bring down inflation, but that the end of the current monetary policy tightening cycle is nearing, Reuters reported.
The comments pushed the dollar to a two-month low of 101.67 against a basket of currencies, as traders scaled back their expectations about how high US interest rates might go.
US interest rate expectations have been a major driver of the dollar since the Fed began its tightening cycle last year.
Markets are now focusing their attention on US consumer price data due on Wednesday, which will provide more clarity on the progress the Fed has made in its battle against stubbornly high inflation.
ZH
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