Dollar retreats on jump in US jobless claims; eyes on Fed

The dollar has fallen due to lower US Treasury yields, after a rise in weekly jobless claims suggested that interest rates were peaking. The focus now shifts to the upcoming week which will see the Federal Reserve, European Central Bank and Bank of Japan announce details of their interest rate decisions after their respective policy meetings. Experts say that, as the US slows down, the Fed may be tempted to pause its rate rises after completing five interest rate hikes. It is believed that the ECB will raise key interest rates by 25bps on 15 June and again in July before pausing for the remaining months of the year.