Dollar's Dilemma: Traders Brace for Fed's Rate Decision

The U.S. dollar slipped slightly as traders anticipated a potential Federal Reserve rate cut in the upcoming meeting. Meanwhile, market data suggests a strong likelihood of additional cuts next year. Focus remains on global economic indicators and potential leadership changes at the Fed, impacting investor sentiment.

The U.S. dollar experienced a slight decline on Friday as market participants awaited next week's Federal Reserve meeting, where a rate cut is widely anticipated.

With the dollar index slipping 0.2% to 98.906, traders are factoring in a nearly 90% chance of a rate cut, driven by soft labor market indicators.

Speculation around Federal Reserve Chair Jerome Powell's successor adds another layer of intrigue, as potential leadership changes could influence future rate decisions.

(With inputs from agencies.)