Dollar falls to two-month low as traders expect further Fed rate cuts

The U.S. dollar fell to a new eight-week low as U.S. benchmark 10-year Treasury yields fell to a new low. Dealers now expect that, the Federal Reserve Board (FED) will have a further rate cut at least 25 basis points, after an emergency 50 basis points cut this week.

Fearing the economic impact of the new crown epidemic, the FED this week eased monetary policy to protect the economy. As the market now even is pricing in more and more rate cut by FED, it has already damaged the uptrend of the dollar in mid to long term and boosted the other currencies around the world.