Dollar Falls to Five-Month Low on Slower Fed Rate Path Outlook
- U.S. currency heads for biggest quarterly loss since 2010
- Emerging-market currencies benefit from greenback decline
Dovish Fed Chair Yellen Stresses Gradual Approach
This article is for subscribers only.
The dollar fell to a five-month low against the euro on speculation the Federal Reserve will take a slower path to higher interest rates as the central bank factors in headwinds from slowing global economic growth.
A gauge of the U.S. currency headed for the biggest quarterly loss since 2010 after Fed Chair Janet Yellen said Tuesday the central bank will act “cautiously” as it looks to withdraw monetary stimulus. The greenback has fallen against all of its 31 major peers in March with Russia’s ruble and Brazil’s real posting the biggest gains, helping emerging-market currencies to their best month in 18 years.