LONDON—The euro climbed back above parity against the dollar for the first time in a month on Wednesday after poor U.S. economic data reinforced speculation that the Federal Reserve will slow its interest rate hikes, sending the greenback tumbling.
The European common currency rose as high as$1.0048, the highest since Sept. 20, and was last up 0.5 percent at $1.0021.
Sterling rose 0.9 percent to $1.1574, its highest since Sept. 14, extending the previous day’s 1.6 percent gain when markets took succour from Rishi Sunak becoming Britain’s prime minister, and the dollar also fell against the Japanese yen, sliding 0.6 percent  to 147.0.
“It’s a continuation of the (dollar) sell-off that we’ve seen since the end of last week. Markets are anticipating a potential slowdown in the pace of Fed hiking,” said Lee Hardman, a currency analyst at MUFG….