The US Dollar eased slightly as investors pivot toward the Federal Reserve’s (Fed) latest rate call due in the middle of the week.
The US Dollar eased slightly as investors pivot toward the Fed eral Reserve’s latest rate call due in the middle of the week. Sentiment is riding on the high side, albeit cautiously, as markets widely anticipate a third straight quarter-point rate cut from the Fed .
It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns.
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