US Dollar weakens in early trades

24 Apr 2023 , 09:41 AM

The dollar weakens amid traders awaiting central bank meetings in May for clues on when the steepest global monetary policy tightening campaign in years might come to a halt.

The recent economic data showing slowdown in US growth show resilience while inflation remains sticky, leaving traders debating the scale of rate cuts expected as early as July through to the end of the year.

The U.S. dollar has slipped against most major currencies in early Asia trade, with the euro and sterling rising 0.05% to $1.0994 and 0.02% to $1.2447, respectively.

The markets are also expecting the European Central Bank (ECB) to raise rates by a quarter point, with some chance of a 50bp hike, which is meeting next week.

Elsewhere, the kiwi gained 0.07% to $0.6143, while the U.S. dollar index slipped 0.02% to 101.66.

The index was eyeing a monthly loss of close to 0.9%, having fallen more than 2% in March.