US dollar retreats on tightening bets, downturn concerns

The dollar fell to an almost eight-week low against the euro on Monday on growing confidence that the Federal Reserve is done hiking interest rates, while comments from multiple U.S. central bank officials this week will be watched for further signals on rate policy.

Fed Chairman Jerome Powell is due to speak on Wednesday and Thursday, where the focus will be on whether he maintains the more dovish tone he struck after the Fed’s two-day meeting last week.

Comments by other Fed officials will also be evaluated for signs on whether they expect further rate increases.

Weaker than expected jobs growth in October released on Friday added to expectations of a slowing US economy, which would support the Fed continuing to hold rates steady. The next major driver for markets will likely be next week’s consumer price inflation data for October.

The dollar index was last down 0.03% on the day at 105.02 and got as low as 104.84, the weakest since Sept. 20. The index fell 1.4% last week, its largest weekly decline since July.