"Federal Reserve's Rate Cut Speculations Push Dollar to Lowest Level in Over Two Months"

The US dollar dropped to a two-month low on Monday, while the yen reached a 6-1/2 week high, as traders speculated that US interest rates have peaked and turned their attention to when the Federal Reserve might begin cutting rates. The dollar index hit its weakest level since September, and the euro rose to its highest level since August. Markets have priced out the risk of further rate increases from the Fed after weaker-than-expected US economic indicators last week. Attention now turns to when the first rate cuts could come, with futures pricing in a 30% chance of rate cuts as early as March.