Dollar slips to lowest since early June as rate hike bets fade

Published Aug 17, 12:11 PM UTC

The US dollar fell to its lowest level since early June 2026, driven by traders trimming expectations for US interest rate hikes following a series of softer-than-expected economic data releases. The decline reflects growing market sentiment that the Federal Reserve may pause or end its tightening cycle. Meanwhile, the Japanese yen strengthened 0.13% to around 159.15 per dollar, despite weaker-than-expected Japanese economic growth data, indicating that currency markets are more focused on US monetary policy shifts. The article, published by The Business Times on August 17, 2026, highlights the impact of economic indicators on currency valuations and central bank policy expectations.