2025.09.2302:03:52UTC+00Dollar Extends Fall Amid Fed Remarks

The dollar index experienced a decline, dropping below 97.3 on Tuesday for the second consecutive session as traders closely analyzed the Federal Reserve's remarks for insights into interest rate strategies. Several Federal Reserve officials have counseled prudence, suggesting that further rate cuts should be approached with care, as inflation seems to be leveling out. On the other hand, new Fed Governor Stephen Miran has expressed concerns that the central bank might be underestimating the current policy's restrictiveness, which could jeopardize the labor market without more substantial easing measures. All eyes are now on the upcoming Personal Consumption Expenditures (PCE) price index, the Fed’s favored measure of inflation, on Friday for potential policy direction. Adding to the market's uncertainty, ongoing congressional budget discussions this week aim to avert a government shutdown slated for September 30. The dollar has generally weakened, particularly showing pronounced losses against the euro and the British pound.