Dollar Ends Rally on Interest Rates Comments

After gaining since the beginning of this trading session on speculations that a robust U.S. economy would provide grounds for borrowing costs to rise in the following months, the dollar slid as government officials stated otherwise.

A comment made by Federal Reserve Bank of St. Louis President James Bullard suggesting that interest hakes may not be hiked this year in the United States impacted market sentiment towards the greenback, as Fed’s position last week raising discount rates fueled speculations that the national benchmark interest rate would also be on the Fed’s plans to be raised at some point this year.

EUR/USD rose slightly to 1.3541 as of 03:16 GMT from as low as 1.3495 hours earlier.

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