Dollar treads water as September Fed cut bets grow
The dollar was lower against the euro and the yen on Thursday, as traders added to bets that the Federal Reserve will cut interest rates next month after New York Fed chief John Williams signalled such a move was possible.
The U.S. currency has been under renewed pressure from President Donald Trump's ramped-up campaign to exert more influence over monetary policy, and as he attempted to fire Lisa Cook, one of the Fed's governors.
Cook filed a lawsuit on Thursday, claiming Trump has no power to remove her from office.
The buck did trim some of its losses after Thursday's data showed improvement in jobless claims and gross domestic product expanding slightly more than expected, but it was still treading water.
"The uncertainty surrounding Fed independence continues to weigh on markets, compounded by rising tariffs in India and the prospect of deployment of the National Guard to more cities, drawing scrutiny towards the U.S.," said Uto Shinohara, senior investment strategist at Mesirow Currency Management.
The currency fell against the euro even after France's prime minister on Monday unexpectedly called a confidence vote for next month, which looks likely to result in the fall of his minority government.
The euro was 0.38% higher at $1.1682. Sterling also rose 0.19% to $1.3525.
The dollar index , which gauges the currency against six major peers, was down 0.31% at 97.862, following two days of declines.
Against the yen, the dollar slipped 0.35% to 146.89 yen.
Source: Reuters
