Dollar weakens on peak Fed rate expectations

By Peter Nurse — The U.S. dollar weakened in early European trade Tuesday as more Federal Reserve officials indicated a slowdown in interest rate rises, with traders speculating a peak in rates might be close.

At 03:10 ET (08:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, dropped 0.4% to 106.067, falling to a new three-month low.

Fed Vice Chair Lael Brainard was, on Monday, the latest Fed official to comment on the state of the central bank’s battle against inflation, echoing weekend comments by Fed Governor Christopher Waller that interest rates need to keep rising to battle inflation, although likely at a slower pace.

“I think it will probably be appropriate soon to move to a slower pace of increases, but I think what’s really important to emphasize is … we have additional work to do,” Brainard said in an interview with Bloomberg in…

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