Citigroup Seeing FX Signals of Early End to Stimulus: Currencies

The foreign-exchange market is signaling to Citigroup Inc. that it isn’t yet convinced the Federal Reserve will fulfill its pledge to keep pumping record amounts of cash into the U.S. economy through 2015.

The U.S. Dollar Index has gained 2.5 percent since the central bank said Sept. 13 it would keep interest rates at record lows through mid-2015 and print $40 billion a month to buy bonds, a policy that debases the currency. Higher-yielding currencies from the Czech koruna to Poland’s zloty that benefited from such actions in the past are weakening.