New York, September 16 (QNA) – The dollar fell sharply Tuesday, hitting a four-year low against the euro, as investors increased bets that the Federal Reserve will cut interest rates this week.

The euro rose 0.8 percent to as much as $1.18783, its highest level since September 2021.

The dollar index, which measures the greenback’s performance against six other major currencies, fell 0.6 percent to 96.787, its lowest level since Jul. 3.

The dollar has stabilized in recent months following a significant decline earlier this year, but has come under renewed selling pressure as expectations grow that the Federal Reserve will resume cutting borrowing costs and as US President Donald Trump renews calls for a significant pace of monetary easing.

Markets are anticipating a 25 basis point interest rate cut on Wednesday, and rapidly declining labor market data has been the primary driver of easing bets in recent weeks. (QNA)