Euro climbs to 4-year peak ahead of Fed call

NEW YORK: The dollar fell across the board on Tuesday, sinking to four-year low against the euro, as investors firmed bets for a Federal Reserve interest rate cut this week, Reuters reported.

The euro was 0.8% higher at $1.1853, its highest since September 2021. The US dollar index , which tracks the US currency against a basket of six major rivals, was 0.6% lower at 96.787, its lowest since July 3.

The buck, which had steadied in recent months following a significant drop earlier in the year, has come under renewed selling pressure as expectations have risen for the Fed to resume cutting interest rates and as US President Donald Trump renewed calls, opens new tab for aggressive monetary easing.

Markets expect a 25-basis-point rate cut on Wednesday, with rapidly softening labor market data being the key driver of the ramp-up in easing bets in recent weeks.

Sterling was 0.4% higher at $1.36530, a more than two-month high, after data showed on Tuesday that Britain’s jobs market has lost a little more steam, potentially easing worries at the Bank of England about persistent inflation pressures. The euro found support Tuesday from data that showed that euro zone industrial production inched higher in July, confirming views that the sector is holding up despite trade tensions, even if its rate of expansion is anemic. Agencies