The dollar stabilizes with expectations of a rate cut

The dollar was broadly stable on Monday, with growing expectations that the Federal Reserve (US central bank) would reduce interest rates later this year.

The euro also stabilized ahead of the expected interest rate cut from the European Central Bank this week.

The dollar index, which measures the performance of the US currency against six major currencies, recorded 104.58 points today. The index fell 1.56 percent in May but rose three percent during the year. The British pound rose 0.04 percent to $1.2748.

As for the euro, it recorded $1.08555 in recent transactions, before the European Central Bank’s monetary policy meeting next Thursday. The central bank is likely to reduce interest rates. Expectations indicate that the European Central Bank will cut interest rates by 57 basis points this year.

On the other hand, the Japanese yen fell slightly to 157.42 against the dollar, remaining close to its lowest level in four weeks at 157.715 to the dollar, which it touched last week.