The dollar decreases to the lowest level in the four years against the euro with the decision of the federal reserve price on the tap

Written by Iqbal Ahmed

New York (Reuters) – The dollar fell in all fields on Tuesday, with its lowest level in four years against the euro, as investors have installed bets to reduce the interest rate in the Federal Reserve this week.

The euro increased by 0.9 % to $ 1.1867, its highest level since September 2021. The US dollar index, which tracks the dollar against a basket of six main currencies, was 0.7 % less at 96.636, its lowest level since July 1.

The dollar, which had been affected in recent months after a significant decrease earlier in the year, has been put up for renewable selling with the rise in expectations until the Federal Reserve resumes interest rates and as with the United States. President Donald Trump Renew calls to relieve aggressive cash.

The markets expect a reduction in the average of 25-Basis on Wednesday, as the softening of the fast labor market data is the main engine of monitoring in the bets that reduce in recent weeks.

“The dollar is trading with a heavy tone in all fields where investors are preparing for Duofish’s message in the voting record on Wednesday, and” Dot Plot “summary of economic expectations and the press conference.”

Federal Reserve Chairman Jerome Powell is scheduled to hold a press conference after the 2nd edition of the Federal Reserve Policy statement on Wednesday.

“Jerome Powell & Co sees the risk of inflation and expressing a clear bias towards supporting labor markets – something that can help set the theater for a series of sequential discounts in the coming months – and traders put asymmetric moves across most of the main currency pairs.”

The dollar got a little data on Monday, which showed us that retail sales increased more than expected in August. Investors are still concerned about American economic growth amid weak labor market and high prices for goods due to customs tariffs on imports.

“Another group of strong activity data for the United States indicates that the US economy is still in good condition despite the recent slowdown in employment growth,” said Jonas Gonterman, Vice President of Economists at Capital Economics, in a note.

“This indicates to us that FOMC will adhere to a more gradual lord to reduce policy more than currently and that the treasury and the dollar revenues are likely to recover a little from here.”

The sterling was 0.5 % higher at $ 1.366, which is higher than two months, after data showed on Tuesday that the job market in Britain had lost more steam, which may reduce concerns in the Bank of England about the pressures of continuous inflation.

National Statistics Office numbers showed the number of workers in salary statements for companies that fell for the seventh month in a row, while the growth of the basic wages in the private sector – was closely monitored by the Bank of England to 4.7 % between May and July from 4.8 % in the three months to June.