The dollar moved lower on Wednesday as new data from the United States showed signs of a cooler economy. This added to growing market hopes that the Federal Reserve may cut rates in December. Traders also watched news about the possible next head of the Federal Reserve, which added another soft tone to the dollar. Many now expect the future policy path to lean toward easier settings. In contrast, the New Zealand dollar jumped after the Reserve Bank of New Zealand lowered rates as expected but gave signals that future policy could be tighter than before. The central bank suggested that inflation pressures still need careful attention. The strong message pushed the kiwi higher. It rose 0.75% to reach $0.5663. The Australian dollar also saw small gains. It climbed 0.14% to trade at $0.6478 after local data showed inflation came in higher than expected. The reading suggested that price pressure in the country was still firm. The Aussie rose by about 0.3% right after the data before easing back. In the United States, retail sales for September rose less than analysts expected. Producer prices matched forecasts. These results pointed to softer demand and steady factory costs. At the same time, a survey showed that U.S. consumer confidence fell in November. Many households said they were worried about jobs and their own budgets. These softer signs added to market views that the Federal Reserve may now take a gentler approach. Traders reacted by adding more bets for a December rate cut. Markets are now pricing in an 84% chance of a 25-basis-point cut, based on data from the CME FedWatch tool. These strong odds kept pressure on the dollar through the day. Analysts said the new data helps build the case for a policy shift. A strategist from a major bank said the latest signs “show a slower U.S. economy” and support the idea of a near-term rate cut. Many traders agree that these numbers point to a softer path ahead. Against the weaker dollar, the euro moved closer to the $1.16 mark. It last traded at $1.1567. News of progress toward a peace plan between Russia and Ukraine also gave the euro slight support. Leaders expressed interest in further talks on a framework backed by the United States, with possible input from European allies. The British pound stayed steady at $1.3166 as traders waited for a major budget announcement from the United Kingdom. The finance minister was expected to reveal tax changes worth tens of billions of pounds. Many investors entered the options market to guard against sharp moves. A strategist from a global bank said both hedging and speculative activity had increased in recent weeks. He added that the pound could rise for a short time if the budget is viewed as careful and well-balanced. The dollar index, which tracks the U.S. currency against a group of major peers, eased by 0.03% to 99.82. It had already fallen 0.3% in the previous session, its biggest daily drop in almost three weeks. A report that Kevin Hassett, a White House economic adviser, may be the leading choice for the next Federal Reserve chair also weighed on the dollar. Hassett has said in the past that interest rates should be lower. Some analysts said that his appointment could support a push toward easier policy. The weaker dollar gave a small lift to the yen. The Japanese currency traded at 156.24 per dollar, a 0.1% move. But it stayed far from its low point of 157.90 seen last week. Traders remained alert to the chance of an intervention by Japanese authorities. With the U.S. Thanksgiving holiday coming, markets may see lighter trading. Several analysts noted that lower activity could offer a window for Japan to act if it wants to support the yen. One strategist said that a direct move by Japan “is a risk this week,” due to recent comments from officials. Across global markets, the day showed how fast currencies can shift when new signals arrive. Expectations for a softer U.S. path, combined with firm action in other countries, shaped the changing Dollar Rate Outlook.