Live Updates > Live Update Details
2025-09-16 14:12:14
The US dollar remained on the defensive on Tuesday, trading near a 2.5-month low against the euro and a 10-month low against the Australian dollar. Traders continued to price in market expectations of a Fed rate cut this week and further easing in the coming months. The US dollar index fell to 97.16, its lowest level since July 24. Markets generally expect the Fed to cut interest rates by at least 25 basis points at its meeting on Wednesday, with a 50 basis point cut less likely. Interest rate futures indicate that investors anticipate a cumulative rate cut of 81 basis points by the end of January. This easing expectation continues to weigh on the US dollar and has pushed US stocks to record highs. US President Trump reiterated pressure on the Federal Reserve on Monday, publicly calling for a "larger" rate cut to boost the housing market and the economy. Meanwhile, recent weak labor market data has further reinforced expectations of a rate cut and driven US Treasury yields lower. Chris Weston, head of research at Pepperstone, said: "The market consensus is moving towards the view that the Fed is behind the curve and must accelerate rate cuts to a neutral level."
