US$ index hits 5-week low over rate hike chances

London

THE US dollar underperformed on Wednesday, hitting a five-week trough against a basket of currencies, hurt by waning expectations that the Federal Reserve will raise interest rates anytime soon.

The dollar index, which tracks the greenback against a basket of six rivals, edged down 0.15 per cent to 93.694 after dropping as low as 93.68, its lowest since May 6.

Against its Japanese counterpart, the dollar fell 0.3 per cent to 107.06 yen, after hitting a low of 106.72 earlier. It climb…