LONDON—The dollar traded at its lowest in six months against the euro and pound on Wednesday after data showed U.S. inflation is cooling off, which investors believe gives the Federal Reserve room to slow the pace of future rate hikes.
After raising interest rates by 75 basis points at four successive meetings, the U.S. central bank is widely expected to deliver a 50 bp increase later in the day. Traders will then turn their focus to Thursday meetings of the Bank of England and the European Central Bank, where consensus is also for a 50 bp rate hike.
