Dollar Falls Versus Higher-Yield Currencies as Fed Bets Vanish
- Greenback heads for biggest 3-week drop versus kiwi since 2013
- Traders trim bets to 27% that Fed will act by December meeting
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The dollar fell against higher-yielding currencies, headed for its steepest three-week decline in two years against its New Zealand counterpart, as signs U.S. growth is slowing spurred traders to scaled back bets for the Federal Reserve to raise interest rates.
A gauge of the greenback dropped to a two-month low as worse-than-expected U.S. economic reports this week, including retail sales and producer prices, highlighted the risks to global growth that kept policy makers from raising rates last month. The dollar declined for a third day against the euro.