FOREX-Dollar hovers near one-month peak as dovish Fed bets tempered

The dollar hovered near a one-month peak versus major peers on Thursday after robust U.S. retail sales data added to building expectations the Federal Reserve will not rush to lower interest rates. Traders have trimmed the odds of a first Fed rate cut by March to 61%, from 65.1% on Tuesday, according to CME's FedWatch Tool. The market is still pricing in a likely 150 basis points of cuts by the end of the year, even as Fed officials including Governor Christopher Waller this week pushed back against expectations of rapid policy loosening.