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Dollar drops amid bets on rate cuts, geopolitical tensions
Dollar drops amid bets on rate cuts, geopolitical tensions

New York, June 25 (TIWN) The US dollar declined in late trading on Monday, as investors remained cautious on the greenback amid high bets on potential rate cuts by US Federal Reserve and Washington's fresh sanctions on Iran.

Investors and traders believed that the Fed cutting interest rates would become a certainty in July, as the probabilities of "ease" in Fed's interest rates remained 100 percent on Monday, according to the CME Group's FedWatch tool.  Such widespread expectations have put a damper on the greenback since the central bank decided to hold its benchmark rates steady and hinted at future rate cuts last week.  U.S. President Donald Trump signed an executive order on Monday to impose additional economic sanctions on Iran, including sanctions on Iran's Supreme Leader Ayatollah Ali Khamenei and many others. 

The U.S. president claimed Monday's move came after "a series of aggressive behaviors by the Iranian regime in recent weeks," including the shooting down of a U.S. drone.  The dollar index, which measures the greenback against six major peers, decreased 0.24 percent at 95.9838 in late trading.  In late New York trading, the euro rose to 1.1400 dollars from 1.1368 dollars in the previous session, and the British pound was up to 1.2742 dollars from 1.2735 U.S. dollars in the previous session. The Australian dollar was up to 0.6966 dollar from 0.6926 dollar.

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