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The dollar index recovers momentum from a near four month low under 96 mark after the US Federal Reserve cut its benchmark interest rates by 25 basis points to 4.25%, marking its first rate cut this year. A cautionary appearance from Fed Chair Jerome Powell bolstered the US Dollar. In considering additional adjustments to the target range for the federal funds rate, the Committee said it will carefully assess incoming data, the evolving outlook, and the balance of risks. However, Fed's Summary of Economic Projections (SEP) indicated that Fed policymakers foresee more rate adjustments in the near future. The dot plot suggests that most policymakers anticipate interest rates will reach about 3.5-3.75% by the end of the year, with the possibility of two more rate cuts through December. The dollar index that measures the greenback against a basket of currencies is quoting at 96.82, up 0.31% on the day. Among basket currencies, EURUSD and GBPUSD turned lower by around 0.3% at $1.1851 and $1.3607 respectively. Powered by Capital Market - Live News
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