Dollar Hits Lowest Against Yen in Over Two Months, Fed Rate Cut Expectations Rise

According to Yahoo News, the dollar fell broadly on Wednesday, reaching its lowest against the yen in more than two months and remaining near a three-month low against its major peers. This comes as expectations grow that the Federal Reserve could begin lowering rates by early next year. The Australian dollar held near a four-month peak, while the New Zealand dollar reached a roughly four-month high of $0.61495 in early Asia trade. Australian inflation data is due later in the day, followed by a rate decision from the Reserve Bank of New Zealand (RBNZ). The greenback tumbled to 147.02 yen and pushed the euro back above $1.10 to last trade at $1.10025, after Fed Governor Christopher Waller, a known hawkish and influential voice at the central bank, flagged a possible rate cut in the months ahead. Market pricing currently shows a 40% chance the Fed could begin easing monetary policy as early as next March, compared to a roughly 22% chance a day ago, according to the CME FedWatch tool. Against a basket of currencies, the greenback slid to a more than three-month low of 102.60. The dollar index was eyeing a nearly 4% loss for November, its worst monthly performance in a year.