Overview

• Federal Reserve Vice Chair Michelle Bowman said rate cuts may be fast approaching, reversing the dollar’s earlier safe-haven gains.
• The dollar index fell to 98.78 after earlier climbing to 99.42, a three-week high driven by investors unwinding risk-off positions.
• The Japanese yen dropped to a 1¼-month low near 148 per dollar on concerns about rising oil costs.
• Eurozone PMI surveys showed no manufacturing growth and only marginal service gains for a second month, supporting calls from ECB’s Centeno for more stimulus.
• Strong June US manufacturing PMI at 52.0 and a surprise 0.8% rise in May home sales lent temporary support to the dollar before dovish Fed remarks.