Tuesday, 16 July 2019 | 05:38 WIB

US Dollar Weakens amid Speculation

US Dollar Weakens amid Speculation (special)

NEW YORK, NETRALNEWS.COM -- The exchange rate of the US dollar weakened against other major currencies at the end of trading on Monday (Tuesday morning Indonesian western time), as investors remained cautious of the greenback amid high speculation about the potential Federal Reserve US interest rate cuts and Washington's new sanctions on Iran.

Investors and traders believe that the Fed's interest rate cuts will be assured in July, because the probability of easing the Fed's interest rates remains 100 percent on Monday (06/24/2019), according to the CME Group FedWatch tool.

As reported by Antara, such broad expectations have weighed on the greenback since the central bank decided to keep its benchmark interest rate steady and signaled future interest rate cuts last week.

Meanwhile, US President Donald Trump signed an executive order on Monday (24/24/2019) to impose additional economic sanctions on Iran, including sanctions on Iran's Supreme Leader Ayatollah Ali Khamenei and many others.

The US president claimed the move came after "a series of aggressive behavior by the Iranian regime in recent weeks," including the shooting of US drones.

The US dollar index, which measures the greenback against six other major currencies, fell 0.24 percent to 95.9838 in late trading.

In late New York trade, the euro rose to 1.1400 dollars from 1.1368 dollars in the previous session, and the British pound rose to 1.2742 dollars from 1.2735 dollars in the previous session. The Australian dollar rose to 0.6966 US dollars from 0.6926 US dollars.

The US dollar bought 107.31 Japanese yen, lower than 107.41 Japanese yen in the previous session. The US dollar fell to 0.9721 Swiss francs from 0.9769 Swiss francs, and fell to 1.3188 Canadian dollars from 1.3209 Canadian dollars, according to Antara.