Dollar slumps on recession fears; yen, Swiss franc benefit
Published on: Monday 05 August 2024
The U.S. dollar fell sharply Monday on concerns over U.S. economic growth, with the Swiss franc and the Japanese yen seeing strong safe-haven demand. The dollar selling follows on data showing a sharp cooling in the U.S. jobs created in July on Friday, with U.S. Treasury yields dropping significantly as traders began factoring a hard landing for the U.S. economy from the prolonged period of elevated interest rates. Traders now fully expect the U.S. Federal Reserve to cut interest rates in September, and are looking for more substantial cuts than the around 50 basis points of reductions that had previously been priced in this year.
