Dollar Surges, Euro Weakens

**London: 6 December 2023 (TraderMade):**The dollar maintained a two-week high, while the Euro weakened as markets bet that the European Central Bank (ECB) would initiate interest rate cuts in March.

The Euro dropped 0.054% to $1.07903 (At about 11:00 AM GMT today) against the US Dollar, hitting a three-week low of $1.0775, driven by soft economic data and dovish central bank remarks.

Experts anticipate about 150 basis points of cuts in ECB interest rates by next year. So, markets are closely watching the ECB's upcoming decision on Thursday. Investors reassessing US rate cuts contributed to the recent dollar surge, as the dollar index remained stable at 103.9725.

In Asia, the focus turned to China following Moody's downgrade of its credit outlook. The offshore Chinese Yuan rose 0.014% to 7.1456 per US Dollar. China's large state-owned banks aggressively sold the US Dollar in response to Moody's statement on Tuesday, continuing the trend on Wednesday, as reported by Reuters.

In other Asian currencies, the Japanese Yen held at 147.375 per US Dollar, the Australian dollar rose 0.33% to $0.65731, and the New Zealand dollar increased 0.32% to $0.61489.