The U.S. dollar bounced back from a 14-month low against the euro on Wednesday, as traders bet on another large rate cut by the Federal Reserve in November due to weak labor market optimism. Meanwhile, the Chinese yuan dipped on doubts about the effectiveness of new Chinese stimulus measures.
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- Dollar hit 14-month low against euro earlier but rebounded.
- Traders expect another large Fed rate cut in November due to labor market concerns.
- U.S. consumer confidence fell sharply in September, the worst in 3 years.
- Market sees 59% chance of a 50 basis point rate cut at next Fed meeting.
- Euro hit its highest point against the dollar since July 2023, helped by Chinese stimulus.
- Yuan eased after China’s central bank announced its biggest stimulus since the pandemic.
- The dollar rose 0.25% to 7.028 yuan in offshore trading.
- Riskier currencies, including emerging market ones, pulled back.
- Australian dollar dropped due to slowing inflation and weak domestic prices.
- Bitcoin fell by 0.73%, reaching $63,758.
