Market News
Dollar on defensive as September Fed cut bets ramp up - REUTERS
Summary
- Fed's Williams signals next month's meeting "live" for a rate cut
- Trump's bid for more Fed control drags on dollar as 2-year yields slide
- Euro resilient despite potential collapse of French government
TOKYO, Aug 28 (Reuters) - The dollar struggled to make headway against major peers on Thursday as traders added to bets for a Federal Reserve interest rate reduction next month after New York Fed chief John Williams signaled a cut was possible.
The U.S. currency is also under renewed pressure from President Donald Trump's ramped-up campaign to exert more influence over monetary policy decisions, as he attempts to fire Fed Governor Lisa Cook and replace her with a loyalist.
The dollar was on the back foot against the euro even after France's prime minister on Monday unexpectedly called a confidence vote for next month, which is likely to result in the fall of his minority government.
The dollar index , which gauges the currency against six major peers, was steady at 98.145, following two days of declines.
The euro was little changed at $1.1640, and sterling edged up slightly to $1.3505.
The dollar slipped 0.14% to 0.8015 Swiss franc , while sliding 0.19% to 147.11 yen.
Japan's chief trade negotiator Ryosei Akazawa canceled a trip to Washington at the last minute on Thursday, delaying an announcement of the details of Japan's $550 billion investment pledge in the United States as part of a tariff deal.
Advertisement · Scroll to continue
Report This Ad
A government spokesperson said the decision was taken after talks with the U.S. side revealed some points that need further discussion "at the administrative level".
On the U.S. monetary front, the Fed's Williams said in an interview with CNBC on Wednesday that "every meeting is, from my perspective, live."
"Risks are more in balance," he said. "We are going to just have to see how the data play out."
Key among data releases ahead of the Fed's September 16-17 policy meeting is the PCE price index on Friday - the Fed's preferred inflation measure - and the monthly payrolls report a week later.
Traders currently lay around 89% odds o
