Dollar Declines on Speculation Fed Keeps Rates Low for Longer

The dollar fell against most of its major peers as traders speculated the Federal Reserve will hold borrowing costs lower for longer amid signs of weakness in the jobs market.

The greenback declined versus the euro as a gauge of labor-market conditions slid and Fed Bank of New York President William C. Dudley said the pace of interest-rate increases is likely to be “shallow” once the central bank starts tightening. The euro advanced after Greece’s Finance Minister Yanis Varoufakis reiterated that the country will make a payment to the International Monetary Fund this week.