Dollar Posts Weekly Decline as Futures Point to Fed on Hold

The dollar fell against most of its major peers this week as a report showing flat U.S. producer prices left traders doubting the Federal Reserve will increase interest rates this month for the first time since 2006.

Economists are split over whether policy makers will alter the benchmark on Sept. 17, while fed fund futures indicate an even slimmer chance of a move. Central-bank policy drove currency markets. Australia’s dollar staged its biggest weekly advance in two years, with traders reducing bets the Reserve Bank of Australia will cut its cash rate by year-end. Sweden’s krona jumped after a report showed its economy expanded faster in the second quarter than originally estimated.