The dollar continued to slide on Thursday, reaching a new low since mid-August against the pound the day after the publication of the minutes of the last meeting of the American Federal Reserve, which signaled its desire to soon slow down its rises. rate.
Around 11:10 a.m. GMT (12:10 p.m. in Paris), the dollar lost 0.46% to 1.2110 dollars per pound, after falling to 1.2126 dollars, a level most affected for three months.
Since the dollar reached its all-time high against the pound in September, at 1.0350 dollars, when the British currency suffered from the ultra-costly budget announcements of the government of Liz Truss, the greenback has lost 14%.
This decline is attributable to the return of a certain political stability in the United Kingdom, but above all to the weakness of the dollar, hitherto driven by the Fed’s monetary policy tightening.
“A slower pace of rate hikes should allow the (Fed Monetary) Committee to better assess progress” in the fight against inflation, while preserving the job market, according to the “minutes” of its last meeting.
“The minutes suggest that the Committee sees the possibility of a recession as very real, which suggests that we must be careful in raising rates” so as not to suffocate the economy, notes Derren Nathan, analyst at Hargreaves Lansdown.
Investors are now expecting a 50 basis point rate hike from the Fed for its last meeting of the year, a marked but less vigorous tightening than the 75 basis points of recent meetings.
The dollar remains up almost 12% since the start of the year against the pound.
Trading volumes will be limited on Thursday due to a US Thanksgiving holiday.
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