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The U.S. dollar on Monday slid to a seven-month low against the euro as traders bet recent economic data would prompt the Federal Reserve to slow the pace of interest rate hikes, while riskier currencies benefited from China reopening its borders.
The euro was up 0.96% at $1.0747, its highest level versus the greenback since June 9, adding to Friday’s 1.17% increase.
Sterling surged 0.87% to $1.21975 against the dollar, building on Friday’s 1.5% rally, while the Swiss franc jumped 0.82% to $0.92, its strongest since early March.
The moves continued the trend lower for the dollar, which in the final three months of 2022 posted its biggest quarterly loss in 12 years. That was driven mainly by investors’ belief that the Fed will not raise rates beyond 5%, from its current range of 4.25%-4.50%, as inflation and growth cool.
“There are a lot of people looking at the Fed funds…