Dollar Hovers at Multi-Week Lows as September Fed Rate Cut Becomes ‘Near Certainty’

The U.S. dollar remained near multi-week lows as traders increasingly bet on a Federal Reserve rate cut in September, with markets now viewing it as a near certainty.

The Japanese yen strengthened against the dollar after Treasury Secretary Scott Bessent suggested the Bank of Japan needs to raise rates while advocating for aggressive Fed cuts.

Bessent called for a “series of rate cuts” and even suggested the Fed could start with a half-point reduction, though analysts view this as unlikely without broader Fed support.