US Dollar Index tumbles into new lows after Fed delivers first rate cut in nine months
The Federal Reserve (Fed) announced a gentle quarter-point interest rate cut, something many market watchers had anticipated. This marks the Fed's first rate cut in nine months, and now investors are eager to see how many more rate cuts might happen through the end of the year.
The Fed's Summary of Economic Projections (SEP) also indicated that Fed policymakers foresee more rate adjustments in the near future. The dot plot suggests that most policymakers anticipate interest rates will reach about 3.5-3.75% by the end of the year, with the possibility of two more rate cuts through December.
The US Dollar Index (DXY) has hit its lowest valuations in almost four years post-Fed, with the US Dollar (USD) basket tumbling into the 96.30 region for the first time since February of 2022.
Source: FXstreet.com