© Reuters. A bank employee counts U.S. hundred dollar bills at Kasikornbank in Bangkok in this January 21, 2010 file photo. REUTERS/Sukree Sukplang/File Photo
By Karen Brettell
NEW YORK (Reuters) – Get ready to make some savvy holiday exchanges if you’re interested in the dollar. The dollar slipped to a five-month low against the euro and a basket of currencies on Wednesday on expectations that the Federal Reserve could soon cut interest rates.
But with many traders out for holidays, the currency volumes are likely to remain muted until the New Year.
The dollar index, which measures the U.S. currency against six others, fell 0.37% to 101.09, its lowest level since July 27. The index is on course for a 2.32% drop in 2023 after two years of strong gains driven by the anticipation of Fed rate rises and then the Fed’s actual rate increases to battle inflation.
The euro, meanwhile, gained 0.54% to $1.1103, the highest since July 27. The single currency is on track to gain 3.61% this year.
If you’re looking to make some savvy holiday exchanges, you may want to read on.
