© Reuters. FILE PHOTO: U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
By Chuck Mikolajczak
NEW YORK (Reuters) – The fell to its lowest in more than two months on Monday, extending a slide from the prior week as investors held to the belief that the U.S. Federal Reserve has finished its interest rate hike cycle and assess when the central bank may start to cut rates.
The dollar index hit a low of 103.46, its weakest level since Sept. 1, after a tumble of nearly 2% last week, which marked the biggest weekly percentage drop since mid-July.
Markets have priced out any additional Fed rate hikes, as recent data has showed a slowing of the economy and inflation pressures – but not enough to increase fears a sharp recession is looming.
On Monday, the Conference Board’s October leading economic indicator showed a decline of 0.8%, slightly below the estimate calling for a 0.7% decrease.
The economic calendar is relatively light due to the shortened work week in the U.S. with the Thanksgiving Day holiday on Thursday.
Markets are now attempting to determine when the Fed may begin to cut rates and are…
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