Dollar continues to fall: interest rate cuts weigh heavily on the currency!

Dollar continues to fall: interest rate cuts weigh heavily on the currency!

On Friday, August 29, the US dollar fell against the euro and the Swiss franc. The dollar's decline continued for three consecutive days. August ended with a 2% decline against a basket of major currencies, pointing to investors' growing concerns about an impending Federal Reserve interest rate cut next month. These uncertainties resulted in the dollar failing to hold on to initial gains following the release of US inflation data.

In evening trade, the dollar index fell 0.09% to 97.803. In this context, the euro rose to $1.1696, indicating monthly gains of over 2%. Sterling also held steady at $1.3502, posting similar monthly gains. Looking at developments against the Japanese yen, the dollar fell 2.5% over the month but recovered slightly in the last session.

Market developments and currency movements

Additionally, there were movements in the New Zealand and Chinese dollars. The New Zealand dollar saw a slight rise following the resignation of Neil Quigley, president of the Reserve Bank of New Zealand. The Chinese yuan hit its highest level in ten months, supported by positive central bank policy. In contrast, the Indian rupee fell to a record low, influenced by trade tensions with Washington.

These developments are part of the dynamic and complex economic landscape of the United States, which, as many know, is considered one of the world's leading economies. The United States is a federal republic consisting of 50 states and the capital district of Washington, D.C. The total area and population make the USA the third largest country in the world.

Economy and international influence

With an estimated GDP of approximately $30.507 trillion in 2025, the U.S. economy is at the forefront of global competition and innovation. The U.S. also have a strong cultural and military presence that greatly influences international events. Hollywood exemplifies significant cultural influence spread through the film and music industries. Politically, the US has a two-party system, dominated by Democrats and Republicans, which has experienced increasing polarization in recent years.

These economic and political conditions directly impact currency movements and are a key factor for investors. The coming months are likely to be crucial as markets react to potential interest rate cuts and their impact on the US economy.

For more details on current exchange rate developments, read the full article at Tesaa World and find out about the complex history and structure of the USA Wikipedia.