U.S. dollar skids as traders reassess Fed's rate hike path

NEW YORK, March 13 (Xinhua) -- The U.S. dollar fell broadly against major rivals in late trading on Monday.

The dollar index, which measures the greenback against six major peers, dropped 0.95 percent to 103.5985.

In late New York trading, the euro was up to 1.0733 U.S. dollars from 1.0645 dollars in the previous session, and the British pound increased to 1.2198 U.S. dollars from 1.2031 dollars in the previous session.

The U.S. dollar bought 133.31 Japanese yen, lower than 134.80 Japanese yen of the previous session. The U.S. dollar decreased to 0.9110 Swiss francs from 0.9213 Swiss francs, and it was down to 1.3727 Canadian dollars from 1.3829 Canadian dollars. The U.S. dollar was down to 10.5984 Swedish Kronor from 10.6866 Swedish Kronor.

The above market reactions came as traders bet that the Federal Reserve will be less aggressive in rate hiking amid turbulence in the U.S. banking sector.

The U.S. Treasury Department, the Fed, and the Federal Deposit Insurance Corporation on Sunday evening announced joint action to stabilize the U.S. banking system, in response to the collapse of two mid-sized lenders, California's Silicon Valley Bank and New York's Signature Bank.

Goldman Sachs' analysts said on Sunday they no longer expect the Fed to deliver a rate hike at its March 22 meeting with considerable uncertainty about the path beyond March, in light of the recent stress in the banking sector.