Dollar holds losses in holiday-thinned trade
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The dollar index stabilized around 106.1 on Thursday, maintaining its recent decline, with trading volumes remaining subdued due to the US Thanksgiving holiday.
Euro and yen gain strength Additionally, the euro and yen gained strength, supported by hawkish remarks from an ECB official and speculation that the BOJ might raise rates in December, further weighing on the dollar.
Dollar holds losses in holiday-thinned trade
The index dropped by 0.8% on Wednesday after US PCE inflation data aligned with expectations, indicating little change in the Federal Reserve’s interest rate outlook. Markets are now pricing in a 66.5% chance of a 25 basis point rate cut by the Fed in December, up from 55.7% a week earlier. The dollar also came under pressure earlier in the week following the nomination of Scott Bessent as US Treasury Secretary, which boosted market confidence and lowered expectations for aggressive tariff policies under the incoming President Trump.Euro and yen gain strength Additionally, the euro and yen gained strength, supported by hawkish remarks from an ECB official and speculation that the BOJ might raise rates in December, further weighing on the dollar.