Dollar steady as traders consider Fed, global rates outlook

The US dollar was weaker due to speculation of another rate hike by the US Federal Reserve. Higher expectations of US and global interest rates were generated by unexpected rate increases from the Bank of Canada and the Reserve Bank of Australia this week. The Canadian dollar remained steady and the US dollar index slightly dipped. Contrarily, sterling and the euro both gained slightly. The Japanese yen was strengthened by data showing Japan’s economy grew in the first quarter, higher than the initial estimate. The Chinese offshore yuan was weak due to China’s weak trade data.