The dollar fell for a fourth day, heading for a heavy weekly loss

The dollar fell for a fourth straight day and is on track to record its biggest weekly loss in more than three months, amid indicators leaning toward easing on the side of the Federal Reserve and renewed concerns about US regional banks. The Bloomberg Dollar Spot Index extended its weekly losses to 0.7%, the worst weekly performance since June, while the two-year Treasury yield fell to a six-week low. On the other hand, traders have increased their bets on a rate cut, and now expect a cut of 53 basis points before the end of the year, compared to only 46 points on Wednesday. Expectations for rate cuts Federal Reserve Governor Christopher Waller said Thursday that officials may continue to cut interest rates by a quarter of a percentage point to support the faltering labor market. On the other hand, Councilor Stephen Miran reiterated his position that a half percentage point reduction this month would be more appropriate. Also Read: Should the Federal Reserve Cut Interest Rates? Although the government shutdown in the United States entered its third week with no signs that a resolution was imminent, and the absence of economic data, comments by Federal Reserve officials prompted investors to strengthen their bets on accommodative trends. “The absence of economic data does not appear to be an obstacle for the Fed, and we expect an additional rate cut of 25 basis points at the October meeting,” economists at Morgan Stanley, led by Michael Gabin, said in a note. US bank shares fell The dollar also fell, with US regional bank shares falling on concerns related to lending standards, in addition to easing political risks in both Japan and France. Also Read: Asian stocks fall amid US credit worries. In the options markets, the general near-term mood has changed to a more pessimistic outlook over the next week, although investment concentrations continue to lean towards the strength of the dollar as the end of the year approaches.