LONDON—The dollar dipped on Wednesday as chances faded for a rate hike next week by the Federal Reserve, while the Canadian dollar touched one-month highs as traders amped up bets for the country to raise rates and the Turkish lira hit record lows.
The Australian dollar traded at three-week highs above $0.67 after the Reserve Bank of Australia’s decision to raise the benchmark cash rate to 11-year highs on Tuesday and Governor Philip Lowe signalled more rate hikes in the pipeline, despite the greater risk of an economic downturn.
However, given the Fed is more likely to leave rates unchanged, rather than cut them any time soon, the U.S. dollar is likely to boast a natural edge over other currencies for now, said Rabobank chief strategist Jane Foley….