The dollar continued its downward trend on Thursday, partially reversing its significant increase of nearly 2% observed on Wednesday, as anticipation builds ahead of a decision from the Federal Reserve (Fed).
In the afternoon, the American currency depreciated by 0.63% against the euro, trading at 1.0797 dollars. It also declined by 0.80% against the pound, reaching 1.2983 dollars following the Bank of England’s (BoE) decision to cut interest rates by 0.25 points.
Analysts expect a similar reduction from the U.S. central bank, which is set to announce its interest rate decision later today.
“Results from the U.S. presidential election will not significantly impact the Fed’s monetary policy in the short term,” noted one analyst. With inflation easing, “the Fed may further lower its key interest rate to adopt a less restrictive stance and stimulate economic growth,” he added.
