Credit Suisse, BofA Say Fed Makes it Tougher to Be a Dollar Bull
- U.S. central bank cites global headwinds in rate decision
- Greenback falls for second week as lower yields dim allure
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The Federal Reserve’s continued embrace this week of monetary stimulus, and tumbling government bond yields, are prompting even dollar bulls to warn of weakness ahead for the U.S. currency.
Some of the world’s biggest banks, including Credit Suisse Group AG, Bank of America Corp., and Commerzbank AG say the potential for the dollar to rise against major currencies has diminished after policy makers kept rates on hold and stopped short of spelling out plans for an increase this year. Hedge funds and other large speculators pared bullish bets on the dollar to the least since May.