The US dollar stabilized on Wednesday against a basket of currencies as traders assessed the chances of the Federal Reserve starting to cut interest rates.
Fed officials refuted expectations of a quick and soon rate cut after the Federal Open Market Committee meeting last week, where it proposed cutting rates three times in 2024, sparking a jump in financial markets.
Traders have a 69% chance of the first rate cut occurring at the Fed's March meeting, followed by a 63.3% chance of another cut in May, according to FedWatch's CME tool.
Atlanta Fed President Rafael Bostic said on Tuesday that he expects to cut rates twice in the second half of the year, but added that he does not see an urgent need to cut them now.
While Thomas Barkin, President of the Federal Reserve in Richmond, said that the possibility of the Fed meeting interest rate cut expectations depends on the performance of the economy.
The dollar index rose by 0.13% to 102.25, after falling by more than 0.3% yesterday, and touching its lowest level in four months at 101.76 last week.
The euro fell by 0.19% to $1.0958, while the sterling recorded $1.2663 in the latest trading, while the yen consolidated around the 143.73 level against the green currency after falling to its lowest levels at 144.95 the previous day.
