The dollar was falling after the Federal Reserve’s Beige Book cemented expectations for further interest-rate cuts.
The report showed economic growth moderated, labor market conditions remained soft and input prices increased. Signals about tariff passthrough were mixed, with some businesses keeping selling prices unchanged and others reporting higher import costs, Evercore ISI analysts said in a note.
Overall, the Beige Book “reinforces the view that the economic outlook has changed little since the September Fed meeting.” This leaves the Fed on track to cut rates by 25 basis points later this month and most likely in December, they said.