The dollar was broadly lower on Thursday as demand for safe-haven currencies declined after a rebound in global equities and the euro strengthened on hopes for a resolution of Italy’s budget dispute.
Analysts believe the medium-term direction of the dollar will be decided by the monetary tightening path of the Federal Reserve.
The Fed is expected to impose its fourth rate hike of 2018 in December, but investors are beginning to question how many rate hikes the Fed can implement next year without risking a slowdown in the domestic economy, which so far has held up well even as borrowing costs have risen.
Analysts believe the medium-term direction of the dollar will be decided by the monetary tightening path of the Federal Reserve.
The Fed is expected to impose its fourth rate hike of 2018 in December, but investors are beginning to question how many rate hikes the Fed can implement next year without risking a slowdown in the domestic economy, which so far has held up well even as borrowing costs have risen.