Dollar Gains Slow as Economic Headwinds May Delay Fed Rate Moves

The dollar posted its smallest monthly advance since June as signs of economic headwinds bolstered sentiment that the Federal Reserve won’t be quick to raise interest rates.

Reports showed the economy expanded at a 2.2 percent annual rate in the fourth quarter, slower than the initial 2.6 percent estimate and a purchasing managers’ survey dropped more than forecast. Chair Janet Yellen reiterated this week the Fed’s pledge to be “patient” on starting to raise borrowing costs means an increase is unlikely for “at least the next couple” of meetings.