US dollar dips on expectations of interest rate cuts

US dollar remained under pressure today, as the index reached 101.54 points, close to its lowest level in five months of 101.42 points.

On the other hand, the euro approached its highest level in four months, as expectations that the Federal Reserve (US Central Bank) would soon reduce interest rates dominated the market.

The euro fell 0.07% to $1.1034 after touching its highest level in four months at $1.1045 yesterday, while the single European currency rose nearly three percent during the year and is on its way to achieving gains for the third month in a row. The Japanese yen also fell 0.17% to 142.64 to the dollar.