Or because the market bets that the Fed will cut interest rates faster than expected, the dollar is close to wiping out all its gains since last year.

Odaily Planet Daily News The Fed has decided to aggressively cut interest rates by 50 basis points to launch a loose monetary policy, which has put pressure on the US dollar. The debate over the extent of future rate cuts by the Central Bank has also intensified in the market. Traders increased their bets on further rate cuts on Tuesday, with a 50% chance of another 50 basis point rate cut in November. The U.S. dollar is about to erase all of its year-to-date gains on bets that the Federal Reserve will cut interest rates faster than expected to support the economy. Although the Bloomberg US Dollar Spot Index pumped slightly on Wednesday, it remained close to its lowest level since December last year. The USD/EUR Exchange Rate is near its lowest level in more than a year, while the GBP/GBP Exchange Rate is at its lowest level in two and a half years. Short-term Treasury yields moved higher as traders ramped up bets on further rate cuts, with two-year Treasury yields falling to their lowest level since late 2022, further flattening the United States yield curve. (Golden Ten)