Dollar Drops on Rate Hike Speculation

The new speculation about rate hikes is that they might come a little later after all. This new view of interest rates has many Forex traders turning away from the dollar, and instead buying other currencies.

US dollar is mostly lower today as Forex traders re-evaluate the likelihood that the Federal Reserve will raise rates as early as some thought. With the global economy slowing down again, and with so much uncertainty (from ISIS to Ebola to Russia) out there, many think that the Fed will have no choice but to put off raising rates.
This latest speculation about the Fed and the US dollar is sending the greenback lower against most of its major counterparts, and the dollar index is down today. Many are also interested to hear more about Fed Chair Janet Yellen‘s possible plans to combat inequality, since she is the first head of the central bank to directly address economic inequality in the United States.
At 10:44 GMT US dollar index is down to 85.1270 from the open at 85.2360. EUR/USD is up to 1.2770 from the open at 1.2751. GBP/USD is up to 1.6134 from the open at 1.6105. USD/JPY is down to 107.0800 from the open at 107.2190. USD/CAD is down to 1.1255 from the open at 1.1289.

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