Dollar fell with the easing of concerns about raising interest rates and optimism about China

The dollar fell to near its lowest levels in 7 months against the other major currencies on Tuesday, January 10, influenced by investor optimism that the Federal Reserve may be close to ending the cycle of increasing interest rates and with the increasing demand for risky assets after the lifting of Covid restrictions in China.

Markets are growing sceptical that the Fed will have to raise interest rates above 5% to control inflation as aggressive rate hikes last year are already bearing fruit, and investors now expect rates to peak below 5% by June.

The euro rose in its latest transactions by 0.07% to 1.0739 dollars, stable near the highest level in 7 months, which was recorded in the last session at 1.07605 dollars.

The British pound fell 0.08% to $1.21705, after it also hit a three-week high of $1.2209 on Monday, after closing up 0.73%.

The dollar index, which measures the dollar’s performance against a basket of major currencies, fell 0.03% to 103.14, after falling 0.7%, to touch a 7-month low of 102.93 in the last session.

The Australian dollar rose 0.03% to $0.69155, after jumping to a more than 4-month high of $0.6950 in the last session.

The New Zealand dollar rose 0.13% to $0.6378, remaining near its highest level in more than 3 weeks, which it recorded yesterday at $0.6411.