The US dollar remains sluggish after experiencing intense pressure following the Fed's decision to cut interest rates by 25 bps. The US Dollar Index (DXY) remains in the lower zone and is trending lower weekly, as market participants assess the Fed's policy stance as being more dovish. Expectations of further interest rate cuts have diminished the dollar's appeal as a high-yielding asset, leading to more capital flows into other assets such as gold, silver, and some riskier currencies.

Nevertheless, in the very short term, the dollar attempted a slight rebound in the US session as US bond yields rose and profit-taking emerged in gold and silver. However, this movement still appears to be a minor correction amidst a broader downtrend. As long as the market remains confident that the Fed will cut interest rates again and US economic data does not show significant strength, the dollar is at risk of further pressure, while other major currencies and precious metals are likely to remain in the ascendant. (Cay)

Source: Newsmaker.id