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FOREX-Dollar languishes as Fed rate hike fears recede; China reopening boosts optimism

The U.S. dollar languished near a seven-month low against other major currencies on Tuesday, as investors took heart that the Federal Reserve may be nearing the end of its rate-hike cycle and as China's reopening drove demand for riskier assets. Markets have grown increasingly doubtful that the Fed will have to take interest rates above 5% to cool inflation, as effects of it aggressive rate increases last year have already been felt in the economy.

FOREX-Dollar sluggish as Fed rate hike fears ebb; China reopening boosts optimism

The U.S. dollar languished near a seven-month low against other major currencies on Tuesday, as investors took heart that the Federal Reserve may be nearing the end of its rate-hike cycle and as China's reopening drove demand for riskier assets. Markets have grown increasingly doubtful that the Fed will have to take interest rates above 5% to cool inflation, as effects of its aggressive rate increases last year have already been felt.

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