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On Wednesday, the dollar hovers near seven-week lows after U.S. Federal Reserve Chairman Jerome Powell hinted at the chance of an interest rate cut in the light of growing trade wars between U.S.-China and economic growth.

The U.S. dollar index was little change versus a basket of six peers barely moved, increasing 0.03 percent at 97.105, in reach of current low of 96.995 its lowest since April 18. It has now tumbled 1.3 percent from above two-year high of 98.371 moved on May 23.

The major currencies reacted to Fed Chairman Jerome Powell’s comments as investors had now priced in some rate cuts by the Fed on the back of the fluctuating economic growth outlook, Masafumi Yamamoto, chief currency strategist at Mizuho Securities said.

St. Louis Federal Reserve President James Bullard said on Monday in a speech that an interest rate cut may be needed “soon.”

Rate cuts by several central banks in current weeks could possibly sign the beginning of a global financial easing cycle to fend off a sharper economic slump.

“Central banks across the globe are adopting a dovish tone. It’s kind of a preemptive move,” said Yamamoto.

“It doesn’t necessarily mean that the economy is worsening – rather the outlook worsened. It’s mainly related to the trade tensions between the U.S. and China and the U.S. and Mexico.”

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Australia’s central bank cuts its cash rate to a record low of 1.25 percent on Tuesday and indicated readiness to go further if deteriorating outlook persists.

For the first time in two-and-a-half years, New Zealand’s central bank cuts its benchmark interest rate a month ago and signaled a 50-50 possibility of another easing, sending the local dollar sharply lower.

South Korea’s central bank a week ago kept monetary policy unchanged but adopted a more accommodative tone while India’s central bank is anticipated to cut interest rate at its policy meeting on Thursday.

The Aussie dollar soared 0.05 percent to $0.6994 before the release of first-quarter gross domestic product data due.

The median forecast in a news agency poll of analysts showed gross domestic product (GDP) likely raised 0.5 percent previous quarter while the yearly stride was anticipated at 1.8 percent.

The euro increased 0.05 percent at $1.1257, extending its gains to a fourth session.

The dollar dropped on Monday to a five-month low versus the Japanese yen. The yen was last at 108.165.

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