Dollar index slips to four-week low

The dollar fell to a fresh four-week low on Wednesday (8 June), against a basket of global currencies.

The dollar index, which tracks the greenback against six international currencies, slipped 0.1% to 93.740; its lowest level since May 11. Earlier in the Asian session, the index fell to as low as 93.695.

Safe-haven demand continued to strengthen the yen, making it the standout currency against its US counterpart. At 9:08am (BST), the dollar was down 0.30% exchanging at JPY107.05, having hit a low of JPY106.72 earlier in the Asian session.

A June interest rate hike by the US Federal Reserve was now looking increasingly unlikely, according to City analysts. Kit Juckes, head of forex at Societe Generale, felt the Fed is on hold for now and probably until after the US Presidential Election.

"Chairwoman Janet Yellen's speech in Philadelphia earlier this week reaffirmed a desire for gradual interest rate increases and could have been read as a sign that the Federal Open Market Committee isn't going to be deterred by one month's weak employment data, but the market focused instead on the Fed's data-sensitivity. They seem to be keener on markets pricing in the possibility of a rate move, than actually delivering one," he added.

The Fed concludes its two-day monetary policy committee meeting on June 15.