US Dollar Strengthens Amid Fed Rate Speculation, Aussie and Kiwi Weaken

The US dollar remains robust as traders anticipate gradual Federal Reserve rate cuts, while skepticism over China's stimulus impacts Australian and New Zealand currencies.

• The US dollar index is near a two-month high as traders expect a 25 basis-point rate cut from the Federal Reserve in November.
• Skepticism over China's fiscal stimulus commitments is negatively affecting the Australian and New Zealand dollars, with the Aussie hitting its lowest since September 12.
• New Zealand's inflation cooled to 2.2% in the third quarter, prompting speculation of a significant rate cut by the Reserve Bank of New Zealand.
• The Japanese yen is nearing the 150 per dollar level, influenced by dovish signals from Japan's central bank and government.
• The euro is close to its weakest level since August 8, ahead of the European Central Bank's anticipated interest rate cut.

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Hindustan Times