The dollar broadly edged lower against its rivals on Thursday after softer U.S. Treasury yields in the wake of weak U.S. housing data sapped demand as investors focused their attention on a Fed meeting next week.
While expectations of a 25 basis point rate cut are baked into money markets, some investors are gunning for a 50 basis point cut. The Fed is widely expected to cut a total of 75 basis points by the end of the year.
Morgan Stanley strategists said in a daily note that the overall outlook for riskier assets remained bearish thanks to disappointing U.S. earnings reports and weak prospects for global trade.
Against a basket of its rivals, the dollar edged 0.1% lower to 97.09.
The weakness in the dollar pushed other currencies higher. The Australian dollar led gainers thanks to a solid jobs report.
Source : Reuters