R.I.P. Dollar Rally as Dovish Fed Spurs Worst Slump Since 2011
- Greenback hit lowest since October 2014 versus yen this week
- Morgan Stanley, Macquarie forecast further dollar weakness
Will Dovish Fed Be the Death of the Dollar Rally?
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The dollar headed for its steepest three-week slide in more than four years as an increasingly cautious Federal Reserve spurred analysts and investors to reassess forecasts for the greenback.
A Bloomberg index tracking the U.S. currency against 10 major peers climbed from an eight-month low reached Friday, two days after Fed officials unexpectedly cut projections for interest-rate increases to two this year from the four they estimated in December. Macquarie Bank Ltd. and Morgan Stanley, two of the world’s top 10 currency forecasters, are highlighting the risk of more dollar weakness.