**The Dollar Rebounds Against the Euro Ahead of Fed Chair’s Speech**
*Expert to Al Arabiya: A 50 Basis Point Rate Cut Could Drive the Dollar*
The dollar recovered from its lowest level in 13 months against the euro on Thursday, ahead of a highly anticipated speech by Federal Reserve Chair Jerome Powell on Friday. Some analysts believe the recent decline in the dollar against other major currencies has been somewhat exaggerated.
The U.S. currency had weakened due to concerns about an economic slowdown and expectations that the Federal Reserve is nearing a rate cut. However, Powell may offer few details in his speech, as key jobs and inflation data for August will be released only after his address but before the September 17-18 meeting.
Minutes from the Federal Reserve’s July 30-31 meeting, released on Wednesday, showed that a “vast majority” of officials favored a rate cut in September. The dollar index rose 0.44% to 101.57, after hitting 100.92 on Wednesday, its lowest level since December 28.
The euro fell 0.41% to $1.1103, after reaching $1.11735 yesterday, its highest level since July 2023. The British pound hit its highest level in 13 months against the dollar after a report showed that UK business activity accelerated this month, while cost pressures dropped to their lowest in over three years.
However, in recent trading, the pound dipped 0.02% to $1.3085, after reaching $1.3130 earlier. It remains close to its July 2023 peak of $1.3144, which, if surpassed, would target the highest level since April 2022. The dollar rose 0.82% against the yen to 146.44 yen.
In the cryptocurrency market, Bitcoin fell 1.05% to $60,605. Sam Haider, a risk manager for financial markets at ABN AMRO Clearing, told Al Arabiya that markets are inevitably pricing in a 25 basis point rate cut by the Federal Reserve at its September meeting.
By/radwa sherif ✏️✏️📚