Dollar at Risk of Further Falls on Fed Repricing

Dow Jones08-13

1447 GMT - The dollar could fall further as recent U.S. data have reduced the prospect of the Federal Reserve raising interest rates, Rabobank's Jane Foley says in a note. Last week's weak jobs data combined with Wednesday's subdued inflation data prompted markets to trim rate-rise bets. "If Fed rate hike speculation continues to be pared back, in line with RaboResearch's view, the dollar will be exposed to potential downside pressures." However, any falls in the currency should be contained by safe haven demand while the Strait of Hormuz remains closed given America's energy exporter status, she says. The euro rises 0.1% to $1.1539 and Rabobank expects choppy range trading between $1.15-$1.16 over the next three to six months.

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