Dollar softens as markets await interest rate decision

The U.S. dollar softened broadly on Monday as traders awaited the Federal Reserve’s interest rate decision scheduled for September 16-17.

Investors anticipate the Fed to resume cutting rates, with the market fully pricing in a 25 basis point cut and a roughly 5.8% chance of a larger 50 basis point reduction, according to CME FedWatch data.

Driving the news: President Donald Trump urged Fed Chair Jerome Powell to implement a “bigger” interest rate cut, citing concerns over the housing market and economic slowdown.

The big picture: The dollar index slipped 0.4% to a six-day low of 97.296 before paring losses slightly to 97.445. • Against the Japanese yen, the dollar dropped 0.3% to 147.258 yen, while the euro gained 0.2% to $1.1759.

What we’re watching: Global central bank decisions ar