Dollar hits two-month low, pound rises

US dollar fell to a two-month low on Tuesday after Federal Reserve officials signaled that the monetary tightening cycle was coming to an end, while sterling rose to a 15-month high after more-than-expected wage growth in Britain. ,

According to “Reuters”, several Federal Reserve officials said on Monday that it is likely that the bank will need to raise interest rates again to curb inflation, but they added that the monetary tightening cycle is coming to an end.

The statements led to the dollar falling to its lowest level in two months against a basket of currencies at 101.67, as dealers lowered their expectations about the size of the additional increase needed in interest rates.

Expectations of US interest rate movement have become a major driver of the dollar since the central bank began its monetary tightening cycle last year.

Markets are now focusing on US consumer price data due on Wednesday, which will show the level of progress the US central bank has made in its fight against hyperinflation.

Sterling rose to its highest level in 15 months at $1.2913 after wage growth in Britain hit a new record, increasing pressure on the Bank of England (central) to take further measures to tighten monetary policy in order to control inflation.

The yen was among the biggest gainers, as it rose about 0.6 percent, to drop from the level of 141 yen per dollar for the first time in about a month. In his most recent transactions, he reached 140.455 yen per dollar

The euro rose 0.1 percent to $1.1012, while the Australian dollar settled at $0.6680 and the New Zealand dollar fell 0.2 percent to $0.6198.

The Chinese yuan rose in foreign transactions, reaching 7.2055 against the dollar in the latest transactions, after sentiment was boosted by the extension of the Chinese central bank’s support for the faltering real estate sector.