Forex News: U.S. Dollar Weakens On Rate Cut Hopes

U.S. Dollar Weakens On Rate Cut Hopes

(RTTNews) - The U.S. dollar was lower against its most major counterparts in the New York session on Monday, as dovish comments from Fed officials fueled optimism about a rate cut in September.

Minneapolis Fed President Neel Kashkari said that it is appropriate to debate about a rate cut in September amid "concerning signs" in the labor market.

In an interview with the Financial Times published on Sunday, San Francisco Federal Reserve Bank President Mary Daly noted that it is time to consider adjusting borrowing costs.

Investors await Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Economic Symposium that could shed light on rate-cut trajectory.

Traders also look ahead to the release of the minutes from the Fed's July meeting on Wednesday.

In economic news, the Conference Board released a report showing its reading on leading U.S. economic indicators fell by much more than expected in the month of July.

The Conference Board said its leading economic index slid by 0.6 percent in July after dipping by 0.2 percent in June. Economists had expected the index to decrease by 0.3 percent.

The greenback declined to near a 5-week low of 0.6722 against the aussie and 5-week lows of 1.3635 against the loonie and 0.6098 against the kiwi, off its early highs of 0.6661, 1.3685 and 0.6046, respectively. The currency is poised to challenge support around 0.68 against the aussie, 1.33 against the loonie and 0.63 against the kiwi.

The greenback dropped to near an 8-month low of 1.1073 against the euro and near a 5-week low of 1.2997 against the pound, from its early highs of 1.1022 and 1.2930, respectively. The currency is seen finding support around 1.12 against the euro and 1.31 against the pound.

The greenback pulled back to 0.8627 against the franc. This may be compared to an early nearly 2-week low of 0.8615. If the currency falls further, it is likely to test support around the 0.84 region.

Meanwhile, the greenback recovered to 146.71 against the yen, reversing from an early nearly 2-week low of 145.18. The currency is likely to locate resistance around the 152.00 level.

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