US dollar slides 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 reducing expectations for further US interest rate hikes following a series of weaker-than-expected economic data releases. The decline reflects growing market sentiment that the Federal Reserve may pause or end its tightening cycle. The Japanese yen strengthened 0.13% to around 159.15 per dollar, despite Japan reporting weaker-than-expected economic growth data, indicating that dollar weakness was the primary driver. The article, published by The Business Times Singapore on August 17, 2026, highlights the impact of softening US economic indicators on currency markets and monetary policy expectations.