Key Facts
• August 28: Dollar fell against major currencies in the New York forex market.
• Dollar index dropped 0.34% to 97.830 by the end of trading.
• New York Fed President Williams suggested potential rate cuts in the future.
• September rate cut probability at 85%, per CME FedWatch.
• Euro/USD rose 0.43% to 1.1688; Pound/USD up 0.13% to 1.3516.
• Dollar/JPY declined 0.4% to 146.815 yen.
• Trump announced dismissal of Fed Governor Cook on August 25 over alleged mortgage fraud.
• Cook filed a lawsuit on August 28, disputing the legal basis for her dismissal.
• U.S. Q2 GDP revision and jobless claims exceeded market expectations, briefly limiting dollar losses.
• August 29: U.S. PCE Price Index release expected to influence markets.
• Japanese Economic Revitalization Minister Ryo Masa Akazawa canceled U.S. visit due to trade policy delays.
Summary
The U.S. dollar weakened against major currencies on August 28, driven by heightened expectations of a September rate cut following comments from New York Fed President John Williams. The dollar index fell 0.34% to 97.830. Market sentiment was further influenced by President Trump’s dismissal of Fed Governor Lisa Cook over alleged mortgage fraud, which Cook legally contested. Positive U.S. economic data, including revised Q2 GDP and jobless claims, temporarily limited the dollar’s decline. Analysts highlighted the Federal Reserve’s upcoming decisions and labor market data as key factors. The euro and pound gained against the dollar, while the yen strengthened. Japan’s Economic Revitalization Minister canceled a U.S. visit due to delays in trade policy developments. The September rate cut probability stands at 85%, with the August 29 PCE Price Index release under close watch.
