Forex - Dollar Extends Losses on Fed's Rate Cut Hints

The dollar was mostly lower in early trading in Europe Thursday, extending losses made on Wednesday after Federal Reserve Chairman Jerome Powell dropped his clearest hint yet that the central bank will cut interest rates at its next policy meeting at the end of the month. By 3:45 AM ET (0745 GMT), the dollar index, which measures the greenback against a basket of developed-market peers, was at 96.553, rebounding a little from an overnight low of 96.463. That’s around half a percent lower than it was before Powell begun his testimony. In addition to Powell’s testimony, which warned of extended “uncertainty” weighing on the economic outlook, the minutes of the Fed’s last policy meeting, released later on Wednesday, warned that some members “judged that uncertainties and downside risks surrounding the economic outlook had increased significantly over recent weeks.”