The US dollar falls as traders reassess the Fed’s rate hike path

The US dollar falls as traders reassess the Fed's rate hike path

NEW YORK, March 13 (Xinhua) — The U.S. dollar fell sharply against major rivals in late trading on Monday.

The dollar index, which measures the greenback against six major peers, fell 0.95 percent to 103.5985.

In late New York trading, the euro was up at US$1.0733 from US$1.0645 in the previous session, and the British pound was up at US$1.2198 from US$1.2031 in the previous session.

The US dollar bought 133.31 Japanese yen, down from 134.80 Japanese yen from the previous session. The US dollar fell to 0.9110 Swiss francs from 0.9213 Swiss francs, and it was down to 1.3727 Canadian dollars from 1.3829 Canadian dollars. The US dollar was down to SEK 10.5984 from SEK 10.6866.

The above market reactions came as traders bet that the Federal Reserve will be less aggressive in raising interest rates amid turmoil in the US banking sector.

The US Treasury Department, the Fed and the Federal Deposit Insurance Corporation on Sunday night announced joint measures to stabilize the US banking system, in response to the collapse of two mid-sized lenders, California’s Silicon Valley Bank and New York’s Signature Bank.

Goldman Sachs analysts said on Sunday they no longer expect the Fed to deliver a rate hike at its March 22 meeting with much uncertainty about the path beyond March, amid recent stress in the banking sector.






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