Dollar Struggles For Traction

The dollar index bottomed around the 105 mark, hovering close to levels not seen since late June and erasing more than half of this year's gains, as prospects of a slowdown in the Federal Reserve tightening and concerns about the US economy spooked investors away from the greenback.

Money markets are pricing an almost 80% odd that the US central bank will hike rates by 50 basis points in December after delivering four successive 75 basis point rate increases.

Still, investors see a loftier chance that the peak for the Fed funds will be higher than expected.

At the same time, some sectors of the US economy, including housing and industry, have been flashing recessionary signs.

This dollar's weakness was seen across the board, with some of the most pronounced selling activity against the euro and the British pound.