The dollar gets weaker as more people think the Fed will be less hawkish. The euro surpasses parity before the ECB.

Singapore On Thursday, the dollar was close to its lowest level in more than a month compared to a group of other currencies. This was because more and more people think that the U.S. Federal Reserve will slow down its rate hikes.

Early in Asian trade, the euro peaked at $1.00935, and the pound peaked at $1.1645. This was their highest point since September 13, but they both lost 0.13% after that.

The dollar fell 0.24% against the Japanese yen, to 146.05.

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Rodrigo Catril, a senior currency strategist at National Australia Bank, said, “Rate differentials and the fact that the Fed still has more work to do are still in favour of the U.S. dollar” (OTC:NABZY).

“But, given how much was priced, there has been a bit of a pullback in the dollar in the short term… We think it’s more of a consolidation of the recent moves than a sign that the dollar will keep going down. ”

When looking ahead to the FOMC meeting next week, the markets are expecting another 75 basis point hike, but it is becoming more likely that the Fed will choose a smaller hike in December.

The prices of single-family homes in the U.S. dropped in August, and sales of new single-family homes in the U.S. dropped in September. This is more proof that the Fed’s aggressive tightening cycle is already slowing the economy.

Overnight, the Bank of Canada announced a smaller-than-expected increase in interest rates and said it was getting closer to the end of its historic tightening campaign.

The last price of one Canadian dollar for one U.S. dollar was $1.3554.

The US dollar index was up 0.18 percent against a basket of currencies at 109.76.Earlier in the session, it had fallen to 109.54, its lowest level in over a month.

The European Central Bank will make a decision about interest rates on Thursday. The markets expect the bank to raise rates by 75 basis points.

“What the ECB says will matter,” said Catril of the National Australia Bank.

“The question is whether they want to show that they are fully committed to their inflation mandate or whether they want to show weakness or worry about what looks like a tough growth outlook.”

The Australian dollar rose 0.15 percent to $0.6505, as a blistering inflation report pushed the Reserve Bank of Australia to raise interest rates sooner.

Australia’s inflation jumped to a 32-year high last quarter, according to data that came out on Wednesday.

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Westpac said on Thursday that it thought the RBA would raise the cash rate by 50 basis points in November. It now thinks the policy rate will peak at 3.85% in March, instead of 3.6% as it had thought before.

The kiwi went up to $0.58635, which was its highest level in more than a month. It was up 0.51% at $0.5861, its last level.