Dollar falls as markets see greater likelihood of Fed rate cuts

The dollar fell as the market sees a higher chance of the Fed cutting rates by 50 basis points this week rather than 25 basis points. LSEG Refinitiv data shows that the market currently sees a near 70% chance of a 50 basis point rate cut by the Fed. "I still firmly believe that a 25 basis point rate cut would be the best option as the current economic data is not worrisome," Swissquote analyst Ipek Ozkardeskaya said in a report. "However, the Fed may want to avoid disappointment in the market with a 25 basis point rate cut, while some Democrats are adding fuel to the fire by calling for a 75 basis point rate cut." (Jin Shi)