Dollar falters as rising bets suggest a larger Fed rate cut

The U.S. dollar dipped as traders raised their expectations of an outsized rate cut from the Federal Reserve later this month. Concerns over the U.S. economy’s growth outlook, following weaker-than-expected data, have pushed investors toward safe-haven currencies like the yen.

This shift comes as global markets remain tense, with stocks showing losses as the growth outlook for the world’s largest economy looks less promising than initially expected. Recent weak U.S. data, including the fall in job openings to a 3.5-year low, has heightened concerns about the robustness of the U.S. labour market. This, in turn, has raised speculation that the Federal Reserve could lean towards a more dovish stance in its upcoming monetary policy meeting.

Read more to find out why dollar dipped.