The US dollar fell on Wednesday after the Federal Reserve cut interest rates by half a percentage point, signaling increased confidence that inflation is on track to reach the Fed’s 2% annual target. The overnight rate was reduced to a range of 4.75%-5.00%, and policymakers expect further cuts this year, bringing the benchmark rate down by another half a percentage point, with additional reductions forecasted for 2025 and 2026.
The dollar index dropped 0.46%, reaching 100.45, its lowest level since July 2023. The euro gained 0.46% to US$1.1164, while the greenback weakened 0.86% against the yen to ¥141.17.
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