The dollar touched a seven-month low on Wednesday, reversing a trend that dominated much of 2022 as lower expectations of sharp Federal Reserve rate rises eased pressure on global markets. The dollar index measuring the currency against a basket of its peers has fallen 10.7 per cent since September, the fastest rate of decline since 2009. The Fed has already pivoted from 0.75 percentage point to 0.5 point increases and is increasingly expected to shift to 0.25 increments. “We currently have traders putting a 5 per cent chance on a 0.50 percentage point increase at the next Fed meeting. However, the dollar recovered to 102.40 in midday trading after Fed officials warned against expecting rates to fall soon.