{"id":118235,"date":"2025-08-29T10:32:59","date_gmt":"2025-08-29T06:32:59","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=118235"},"modified":"2025-08-29T10:33:03","modified_gmt":"2025-08-29T06:33:03","slug":"dollar-weakens-amid-fed-rate-cut-bets-and-political-uncertainty","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-weakens-amid-fed-rate-cut-bets-and-political-uncertainty\/08\/29\/market-updates\/","title":{"rendered":"Dollar Weakens Amid Fed Rate-Cut Bets and Political Uncertainty"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The U.S. dollar wavered on Friday, heading for a <strong>2% decline in August<\/strong> against major currencies, as markets weighed rising expectations of a <strong>Federal Reserve interest rate cut next month<\/strong> against concerns over the central bank\u2019s independence.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>President <strong>Donald Trump\u2019s attempts to influence monetary policy<\/strong>, including firing Fed Governor <strong>Lisa Cook<\/strong>, have added pressure. Cook has <strong>filed a lawsuit<\/strong>, asserting her removal is unlawful.<\/li>\n\n\n\n<li>The dollar index slipped to <strong>97.917<\/strong>, down nearly <strong>10% year-to-date<\/strong>, reflecting investor caution amid erratic U.S. trade policies.<\/li>\n<\/ul>\n\n\n\n<p><strong>Major currency moves:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Euro:<\/strong> $1.16625, set for a <strong>2% gain in August<\/strong>.<\/li>\n\n\n\n<li><strong>Sterling:<\/strong> $1.3509.<\/li>\n\n\n\n<li><strong>Japanese yen:<\/strong> 147.01 per dollar.<\/li>\n\n\n\n<li><strong>Australian dollar:<\/strong> $0.6533, up <strong>1.6% for the month<\/strong>.<\/li>\n\n\n\n<li><strong>Chinese yuan:<\/strong> strongest in <strong>10 months<\/strong> against the dollar, supported by stable central bank fixings and a hot domestic stock market.<\/li>\n<\/ul>\n\n\n\n<p><strong>Yields and market implications:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trump\u2019s push to appoint <strong>dovish candidates<\/strong> to the Fed has pressured <strong>short-term yields lower<\/strong>, while <strong>long-term yields rose<\/strong>.<\/li>\n\n\n\n<li>The <strong>two-year\/ten-year yield curve<\/strong> stood at <strong>57 basis points<\/strong>, after reaching its steepest since April earlier this week.<\/li>\n\n\n\n<li>A <strong>politically influenced Fed<\/strong> could keep rates lower than normal, potentially increasing <strong>inflation<\/strong> and reducing foreign demand for U.S. debt.<\/li>\n<\/ul>\n\n\n\n<p><strong>Rate-cut expectations:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fed Governor Christopher Waller<\/strong> signaled readiness to start cutting rates next month and expects <strong>further reductions<\/strong> to bring policy closer to neutral.<\/li>\n<\/ul>\n\n\n\n<p>The market\u2019s reaction to the Fed-Tump tension has been relatively <strong>muted<\/strong>, with modest dollar selling and a slight <strong>steepening of the yield curve<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar wavered on Friday, heading for a 2% decline in August against major currencies, as markets weighed rising expectations of a Federal Reserve interest rate cut next month against concerns over the central bank\u2019s independence. President Donald Trump\u2019s attempts to influence monetary policy, including firing Fed Governor Lisa Cook, have added pressure. Cook &hellip;<\/p>\n","protected":false},"author":9,"featured_media":52958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-118235","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118235"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118235\/revisions"}],"predecessor-version":[{"id":118236,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118235\/revisions\/118236"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/52958"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}