According to Yahoo News, the dollar remained near a three-month low on Thursday, with expectations of a steep monthly decline as investors increased bets that the Federal Reserve will halt rate hikes. The dollar index, which measures U.S. currency against six rivals, eased 0.058% to 102.74, close to its lowest point since August 10. The index has dropped 3.7% in November due to growing expectations that the Fed will cut interest rates in the first half of 2024. The dollar regained some losses on Wednesday after data revealed that the U.S. economy grew faster in the third quarter than initially reported.
Investor focus will be on comments from Fed Chair Jerome Powell, who is scheduled to speak on Friday, following Fed Governor Christopher Waller's indication of a possible rate cut in the coming months. However, before that, attention will be on Thursday's crucial personal consumption expenditure (PCE) inflation report. U.S. financial conditions are the loosest since early September, with an easing of 100 basis points (bps) in a month, according to Goldman Sachs. The bank's global and emerging market indexes have also loosened by around 100 bps from a month ago. U.S. rates futures markets are now pricing in over 100 basis points of rate cuts next year, starting in May, and the two-year Treasury yield is at its lowest since July.