Economics
Dollar Drops as Fed's Evans Says Rate Increase Makes Him Nervous
- U.S. currency falls from seven-month high against euro
- Euro rises on speculation ECB won't exceed dovish market view
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The dollar fell from a seven-month high against the euro as a Federal Reserve official stressed that he’d like to see more evidence of strengthening economic growth and inflation, signaling interest-rate increases will be gradual.
The U.S. currency declined versus all of its Group-of-10 peers after Chicago Fed President Charles Evans, among the most dovish of central bank officials, reiterated Tuesday that he expects interest rates to stay below 1 percent by the end of next year, compared with virtually zero now. A report showed manufacturing unexpectedly contracted in November, reflecting the uneven nature of the American economy.