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Dollar dips as markets price high odds of Fed rate cut next week
Dollar weakens as markets bet nearly 90% on a Fed rate cut next week, bolstering risk-assets and easing safe-haven demand.
The U.S. dollar index slipped to near a five week low on December 5, 2025, as investors bet on a roughly 90% chance of a rate cut by the Federal Reserve next week. The euro remained stable around $1.164, while global risk assets firmed up amid growing optimism for easier U.S. monetary policy. The slide reflects shifting investor sentiment with risk on trades regaining strength and safe haven demand easing.