Dollar struggles on rate cut expectations; yen on back foot

The U.S. dollar slipped against major currencies on Wednesday as traders sold the currency due to expectations of interest rate cuts by the U.S. Federal Reserve. The yen was an exception as the dollar held firm after the Bank of Japan gave no indication of ending its loose monetary policy. Fed officials have pushed back against rate cuts, but market participants are still expecting a cut in March. The dollar index remained flat, and its movement will depend on economic data supporting the anticipated rate cuts. The yen weakened after the Bank of Japan’s policy decision. The euro and sterling held firm, while bitcoin saw a slight increase.