Internationally Dollar Hits 1 Month Low

News Desk (B – Trams): Dollar index weakened toward 101.5 on Friday, hitting its lowest level in a month, as investors reassessed expectations about future Federal Reserve rate hikes amid signs the central bank might slow or even pause its tightening cycle later this year.

Minutes of the last FOMC meeting showed that most participants believed that 50 basis point rate hikes would be appropriate at each of the next two meetings in June and July to get on top of inflation.

However, many officials thought big, early hikes would allow room to pause later in the year to assess the effects of that policy tightening, while carefully watching the evolving economic outlook.

The dollar also tracked Treasury yields lower as recent softness in US economic data and corporate earnings raised fears of an economic slowdown. The index is down 1.5% so far this week and is on track to decline for the second straight week.