KONTAN.CO.ID - LONDON. The dollar held above a recent two-and-a-half-month low on Tuesday as bets on an interest rate cut by the Federal Reserve increased, although investors were wary of selling aggressively before a Group of 20 summit this month. Markets are only pricing in about a 20% chance of a rate cut in June, but they are pricing in about 100% chance of a cut by July. A policy meeting is due next week. "Bets of U.S. rate cuts have been rising quickly in recent days and we think the pricing has become too aggressive so the dollar's downside is limited," said Manuel Oliveri, a currency strategist at Credit Agricole in London.
Dollar near 2.5 month lows as bets on rate cut grow
KONTAN.CO.ID - LONDON. The dollar held above a recent two-and-a-half-month low on Tuesday as bets on an interest rate cut by the Federal Reserve increased, although investors were wary of selling aggressively before a Group of 20 summit this month. Markets are only pricing in about a 20% chance of a rate cut in June, but they are pricing in about 100% chance of a cut by July. A policy meeting is due next week. "Bets of U.S. rate cuts have been rising quickly in recent days and we think the pricing has become too aggressive so the dollar's downside is limited," said Manuel Oliveri, a currency strategist at Credit Agricole in London.