Economics
Dollar Traders Give Yellen Green Light as Fed Rate Meeting Nears
- Greenback falls from 12-year high after ECB, payrolls
- Currency's tumble means less of a drag on growth, inflation
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The dollar’s biggest weekly loss since May just made it a little easier for the Federal Reserve to raise interest rates.
The greenback’s tumble from a 12-year high removes one of the last stumbling blocks for officials contemplating how to navigate their first rate increase in almost a decade. As the specter of liftoff looms, options suggest traders are the least concerned in four months about dollar strength versus the euro. Hedge funds and other large speculators reduced bets on dollar gains for the first time in six weeks in the period through Dec. 1, Commodity Futures Trading Commission data show.