12 Dec 2025, Fri

Dollar loses ground against peers after Fed cuts rates

NEW ⁠YORK, Dec 10 (Reuters) – The U.S. ⁠dollar extended losses against major peers including the ⁠euro, Swiss franc, and Japanese yen on Wednesday after ​the Federal Reserve lowered interest rates ‍in a widely expected move.

The Fed’s decision to lower the benchmark policy rate by a quarter of ​a percentage point to the 3.50%-3.75% range drew three dissents: Chicago Fed President Austan Goolsbee and Kansas ​City Fed President Jeffrey Schmid argued that the ⁠policy rate should be left unchanged, ‌while Fed Governor Stephen Miran again advocated for a larger ⁠half-percentage-point reduction.

The greenback lost ​ground against peer currencies immediately after the ‌Fed’s announcement. The dollar weakened 0.58% against the Swiss franc ‍to 0.801 and was last down 0.4% to 156.24 against the Japanese yen.

The euro was up 0.39% at $1.167. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.38% to 98.84.

(Reporting by Chibuike Oguh ⁠in New York; Editing ‌by Nia ⁠Williams)