Dollar Steady Amidst Fed Rate Hike Speculation

4 Dec 2024 , 12:51 PM

As traders considered the likelihood of a Federal Reserve interest-rate drop this month, the U.S. dollar bounced back from a three-week low against the yen on Wednesday and maintained its position against other significant competitors.

South Korea’s won stabilised after plunging to a two-year low on Tuesday and then partially recovering after President Yoon Suk Yeol abruptly reversed the decision after a dispute with lawmakers and initially unexpectedly imposed martial law.

According to dealers, the nation’s central bank might have sold dollars to boost the won at Wednesday’s opening.

With traders keeping an eye on how far Beijing is ready to allow its currency fall, the Chinese yuan hovered around its lowest level in over a year in offshore trading due to pressure from incoming U.S. President Donald Trump’s repeated tariff threats.

Data revealed that Australia’s economy grew by less than analysts had predicted, which caused the dollar to drop.

Later in the day, as French parliamentarians readied themselves to vote on motions of no-confidence that are almost certain to overthrow the government, the euro managed to stay above its recent two-year low.

At 0120 GMT, the U.S. dollar index, which compares the currency to six major peers, including the euro and the yen, increased by 0.07% to 106.39.

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